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RES 2018-0423 - Agmt with League of Human Dignity Inc for barrier removal services for 10 housing units °p,IAHA,4,4 ram-- Planning Department ° .( , Omaha/Douglas Civic Center wrtiir o-+,,;. 1819 Farnam Street,Suite 1100 ' 11, r°''^ Omaha,Nebraska 68183 °p (402)444-5150�A�T�D FEBR,t,,�~ Telefax(402)444-6140 David K.Fanslau City of Omaha Director Jean Stothert,Mayor May 1, 2018 Honorable President And Members of the City Council, The attached Resolution approves an Agreement with the League of Human Dignity, Inc. ("LHD"), 5513 Center Street, Omaha, Nebraska 68106, a Nebraska Non-profit Corporation, for the operation of a barrier removal program. This Agreement is comprised of $50,000.00 in Community Development Block Grant funds from FY 2017 and will supplement $98,517.00 in other funding sources for a total program budget of $148,517.00, and provides funding for the eligible activities from January 1, 2018, through March 31, 2019. The Project is included in the FY 2017 Consolidated Submission for Community Planning Programs approved by the City Council on April 18, 2017, by Resolution No. 435. Funds shall be payable from the FY 2017 Housing Development Program, Fund No. 12186, Organization No. 128072. Under the agreement, the LHD Barrier Removal Program will provide residential barrier removal accessibility modifications for low- and moderate-income homeowner or rental households that have a physically disabled family member. In addition, the LHD conducts needs assessments and provides technical assistance to qualifying households in coordination with related programs offered by the Department of Health and Human Services, Vocational Rehabilitation Services, and the Eastern Nebraska Office on Aging. The LHD will provide barrier removal services for approximately ten (10) housing units on scattered sites within the city limits of the City of Omaha. The contractor has on file a current Annual Contract Compliance Report Form (CC-1). As is City policy, the Human Rights and Relations Department will review the Contractor to ensure compliance with the Contract Compliance Ordinance. The accessibility modification projects offered by the League of Human Dignity are an important element of the City's overall affordable housing development effort. Honorable President and Members of the City Council Page 2 Your favorable consideration of this Resolution will be appreciated. Respectfully submitted, Referred to City Council for Consideration: 4.12.t.tie David K. Fanslau . Date Mayor's Office D'ate Planning Director Approved: /1 -.6 //I Step 4 B. Curtiss �{ A Date Finance Director 2658 dlh C-25A CITY OF OMAHA LEGISLATIVE CHAMBER Omaha,Nebraska RESOLVED BY THE CITY COUNCIL OF THE CITY OF OMAHA: WHEREAS, the City annually receives Community Development Block Grant funds under Title I of the Housing and Community Development Act of 1974, as amended, for the purpose of benefiting low- and moderate-income residents, eliminating slums and blight, and for other urgent community development needs; and, WHEREAS, the Mayor recommended various projects in the 2017 Consolidated Submission for Community Planning and Development Programs (Consolidated Plan), approved on April 18, 2017, by Resolution 435, including $50,000.00 for the continuation of the League of Human Dignity, Inc. (LHD), a Nebraska Non-profit Corporation, Barrier Removal Program under the Housing Accessibility Program; and, WHEREAS, the LHD has submitted an application that provides for a program to provide accessibility modifications on properties owned or rented by low- and moderate-income households that have a physically disabled family member(the Project); and, WHEREAS, the LHD offers independent living services to persons with disabilities, including assistance with barrier free housing; and, WHEREAS, the rehabilitation and improvement of privately owned buildings for residential purposes are eligible uses of CDBG funds; and, WHEREAS, the LHD has indicated the total estimated Project cost to be $148,517.00, consisting of $50,000.00 in FY 2017 CDBG Funds combined with $98,517.00 in private funds for the removal of architectural barriers for ten (10) properties for low- and moderate-income owners and renters with a disabled family member; and, WHEREAS, the Consolidated Plan identified this Project as providing or improving housing which is determined to benefit low- and moderate-income persons or addresses slums and blighted conditions on a spot basis and, therefore, the Project is consistent with the Consolidated Plan; and By Councilmember Adopted City Clerk Approved Mayor C-25A CITY OF OMAHA LEGISLATIVE CHAMBER Omaha,Nebraska Page 2 WHEREAS, it is in the best interest of the City of Omaha to enter into an agreement with the LHD to provide partial funding for the Barrier Removal Program. NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF OMAHA: THAT, as recommended by the Mayor, the attached Agreement between the City of Omaha and the League of Human Dignity, Inc., a Nebraska Non-profit Corporation, 5513 Center Street, Omaha, Nebraska 68106, in the amount of $50,000.00 in FY 2017 funds for barrier removal services for ten (10) housing units within the city limits of the City of Omaha for the period from January 1, 2018 through March 31, 2019, is hereby approved. Funds shall be paid from the Community Development Block Grant, Fund No. 12186, and Organization No. 128072. 2658 dlh APPROVED AS TO FORM: /LW Pc!)/2 ASSISTANT CITY ATTORNEY DATE y••�a: s.:. Coulmember Adopted MAY 0 1 20181,---0 City Clerk �. .. . ��J Approved • •••• Mayor • NO • Resolution by _4:« Presented to City Council elizabeth City Clerk COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM (CDBG) BARRIER REMOVAL PROGRAM BETWEEN THE CITY OF OMAHA AND LEAGUE OF HUMAN DIGNITY, INC., A NEBRASKA NON-PROFIT CORPORATION FOR The modification of occupied residential units to remove architectural barriers for low- and moderate-income homeowners or rental households that have a physically disabled family member. $50,000.00 in FY 2017 CDBG Funds 1 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 the City 3.01.1 Contracts 3.01.2 Plan Submissions 3.01.3 Environmental Review Tier II Checklist/Review Form 3.01.4 Evidence of Leveraged/Matching Funds 3.01.5 Minority/Women Owned Business Enterprise Plan 3.01.6 Eligible Contractors 3.02 Funding Compliance Deadline 3.03 Use Restrictions SECTION 4 PROJECT RESPONSIBILITIES OF CONTRACTOR 4.01 Eligible Use of Funds 4.01.1 Ineligible Uses 4.02 Terms and Conditions 4.03 Breach of Agreement 4.04 Lien Waivers 4.05 Ineligible Costs 4.06 Lead-Based Paint Prohibition 4.07 Ongoing Property Restrictions 4.08 Property Standards (24 CFR 92.251) 4.09 Affirmative Marketing Policy 4.10 Contractors' Insurance and Workers' Compensation 4.11 Performance and Labor Material Payment Bond and/or an Irrevocable Letter of Credit SECTION 5 GENERAL ADMINISTRATION REQUIREMENTS OF CONTRACTOR 5.01 Financial Management 5.01.1 Accounting Standards 5.01.2 Cost Principles 5.01.3 Audits 5.02 Documentation and Record-Keeping 5.03 Reports 5.03.01 Project Performance Reports 2 fi 5.04 Financial Status Reports 5.05 Record Retention 5.06 Personnel and Participant Conditions 5.06.1 Contract Compliance Clause 5.06.2 Workers' Compensation 5.06.3 Employment Insurance and Bonding 5.06.4 Minority/Women Owned Business Enterprise Plan 5.06.5 Section 3-Employment of Low-Income Persons (Section 3 of HUD Act of 68, as amended, 1 U.S.C. 1701u) 5.06.6 Conflict of Interest 5.06.7 Attestation of Citizenship 5.06.8 Employee Classification Act 5.07 Match Funds 5.08 Limited English Proficiency (LEP) SECTION 6 CONTRACTOR'S 'COMPLIANCE WITH OTHER FEDERAL REGULATIONS 6.01 Environmental Review 6.02 Uniform Relocation Act 6.03 Other Program Requirements 6.04 Federal Funding Accountability and Transparency Act SECTION 7 RESPONSIBILITIES'OF THE CITY 7.01 Performance Monitoring 7.01.1 Report Reviews 7.01.2 On-site Monitoring 7.01.3 Technical Assistance 7.02 Payments 7.02.1 Funds Allocated to the Contractor 7.02.2 Obligation for Payment 7.03 Inspections 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 i 8.07 Merger 8.08 Modification 8.09 Assignment 8.10 Strict Compliance 8.11 Termination 8.12 Reversion of Assets 3 8.13 Indemnification 8.14 Unenforceable Provisions 8.15 Disclosure of Lobbying 8.16 Notices SECTION 9. DEFAULT PROVISIONS 9.01 Remedies SCHEDULE OF EXHIBITS 4 CDBG PROGRAM AGREEMENT THIS AGREEMENT is entered into by and between the City of Omaha (hereinafter referred to as "the City") and the League of Human Dignity, Inc., a Nebraska Non-profit Corporation, (hereinafter referred to as the "Contractor"), 5513 Center Street, Omaha, Nebraska 68106. RECITALS: WHEREAS, the City is a municipal corporation located in Douglas County, Nebraska, and is organized and existing under the laws of the State of Nebraska, and is authorized and empowered to exercise all powers conferred by the State constitution, laws, Home Rule Charter of the City of Omaha, 1956, as amended, and local ordinances, including but not limited to, the power to contract; and, WHEREAS, the City of Omaha has applied for and received Community Development Block Grant (hereinafter referred to as "CDBG") funds under Title I of the Housing and Community Development Act of 1974, as amended, for the purpose of benefitting low- and moderate-income residents, eliminating slums and blight, and for other urgent community development needs; and for the purpose of providing affordable rental housing benefiting low- and moderate-income residents; and, WHEREAS, the City's FY 2017 Consolidated Submission for Community Planning and Development Programs (hereinafter referred to as the "Consolidated Plan"), outlining priorities, programs and funding allocations for the 2017 program year, was approved on April 18, 2017, by Resolution No. 435; and, WHEREAS, the Contractor has submitted an application that provides for a barrier removal program to provide accessibility modifications on Properties owned or rented by low- 5 and moderate- income households that have a physically disabled family member (hereinafter referred to as the "Project"). Other services provided by the Contractor include performing needs assessments and providing technical assistance to qualifying households in coordination with related programs offered by the Department of Health and Human Services, Vocational Rehabilitation Services and the Eastern Nebraska Office on Aging; and, WHEREAS, the Consolidated Plan identified that this Project provides or improves housing which is determined to benefit low- and moderate-income persons or addresses slums and blighted conditions on a spot basis and therefore the Project is consistent with the Consolidated Plan and is eligible for funding; and, WHEREAS, the rehabilitation and improvement of privately owned buildings for residential purposes are eligible uses of CDBG funds (24 CFR570.202); and, WHEREAS, the City wishes to enter into an Agreement with the Contractor to assist the City in utilizing such CDBG funds; and, I WHEREAS, League of human Dignity Barrier Removal Program was included in the FY 2017 CDBG Program Consolidated Plan! and $50,000.00 was allocated to the Project; and, WHEREAS, the Contractor proposes to modify ten (10) housing units on scattered sites in need of barrier removal during the term of this Agreement; and, WHEREAS, it is in the best interest of the City and the residents thereof that the City enter into an Agreement with the Contractor to provide CDBG funding in the amount not to exceed $50,000.00 for the League of Human Dignity Barrier Removal Program. NOW, THEREFORE, IN CONSIDERATION OF THESE MUTAL COVENANTS, the parties do hereby agree as follows: 6 fI 1 SECTION 1. DEFINITIONS AND ABBREVIATIONS. The following terms shall have the following meanings for all purposes in this Agreement. 1.01 "City" shall mean—the City of Omaha, a Nebraska Municipal Corporation. 1.02 "Contractor" shall mean—the League of Human Dignity, Inc., a Nebraska Non- profit Corporation, 5513 Center Street, Omaha, Nebraska 68106 (See Exhibit 1.03 "Director" shall mean—the Planning Director of the City of Omaha. 1.04 "Recipient" shall mean—the City of Omaha. 1.05 "Subrecipient" shall mean — a public agency or private non-profit organization receiving CDBG funds to undertake eligible activities. In this Agreement the Subrecipient is the League of Human Dignity, Inc. 1.06 "HUD" shall mean—the U.S. Department of Housing and Urban Development. 1.07 "CDBG Grant Funds" shall mean — that portion of the Community Development Block Grant Program Funds awarded to the City, subject to and conditioned upon actual receipt of same by the City of Omaha, as may be available to grant during the FY 2017 program year for the use specified herein in an amount not to exceed $50,000.00 payable (consisting of $45,000.00 for services rendered and $5,000.00 representing 10% project delivery cost) from the CDBG Housing Development Program, Fund No. 12186, Organization No. 128072, subject to the terms, conditions and requirements of said Loan Fund Agreement. 1.08 "Grant" shall mean — CDBG funds made subject to the terms, conditions and provisions of this Grant Agreement. The grant shall be unsecured and shall be available for the use specified in the scope of work (Exhibit "B"), attached hereto and incorporated herein by this reference as though fully set forth, and Project Performance is completed as delineated in Sections 2.01 and 2.02 ' herein. 1.09 "Project" shall mean—the League of Human Dignity Barrier Removal Program. 1.10 "Construction Completion" shall mean — the date the construction work for Authorized Projects has been certified by the City as meeting all state, federal and local laws, ordinances, regulations and codes, including but not limited to, housing and zoning codes and accessibility requirements, where applicable. 7 1.11 "Project Completion" shall mean — the date Construction Completion has been certified on ten (10) housing units and approved by the City, and all approved CDBG funds have been disbursed. 1.12 "Construction Work" shall mean — the physical modification of properties and related costs, including but not limited to billings for rehabilitation, costs for materials, labor, profit and overhead and operational costs directly associated with the approved individual Project as detailed in the Project Budget. 1.12.1 Profit and overhead shall not exceed 15% of construction hard costs. 1.13 "Project Close Out" shall mean — the dates all project CDBG funds have been disbursed and City has completed HUD and State close out procedures9(24 CFR 570.509 and 2 CFR, Part 215) (Exhibit"C"). 1.14 "Property" or "Properties" shall mean — the dwelling units on scattered sites within the city limits of the City of Omaha that need barrier removal modifications and are occupied by low- and moderate income households as their principal place of residence. 1.15 "Low- and Moderate-Income Household or Family" shall mean — a household whose annual household income does not exceed 80 percent (80%) of the median income for the Omaha NE-IA Metropolitan Statistical Area as determined by HUD. (Exhibit"D") 1.16 "Client" shall mean—a qualified homeowner or renter making application to the Contractor for the Barrier Removal Program consistent with the requirements of the Guidelines in the Scope of Work. (Exhibit"B") 1.17 "Authorized Projects" shall mean — those projects selected by the Contractor staff consistent with the requirements in the Guidelines in the Scope of Work (Exhibit "B") and Section 7.03 herein. CDBG funds for each Authorized Project shall not exceed $5,000.00. The Director or his designee may waive this limit on a case by case basis upon the request of the Chief Executive Officer of the League of Human Dignity. Waivers may be approved for the following reasons: 1) The project cost exceeds $5,000.00 and the Contractor has demonstrated that co-funding is not available from other sources; or 2) The project cost exceeds $5,000.00 by a small amount, not to exceed $500.00. 1.18 "Program Income" shall mean — the gross income received by the Recipient or Subrecipient directly ,generated from the use of CDBG Funds (24 CFR 570.500(1). When such income is generated by an activity that is only partially assisted with CDBG Funds, the income shall be prorated to reflect the percentage of CDBG Funds used (see Exhibit "E" attached hereto and incorporated herein by this reference as though fully set forth). Any program income fund received during the term of this Agreement shall be returned to the City within thirty (30) days prior to any additional distribution of CDBG Funds. 8 1.19 "Disabled" and "Handicapped" shall mean — the Social Security Administration's disability definition and the Title I Housing and Community Development Act definition of handicapped or disabled person shall be used as follows: 1.19.1 "Disabled" shall mean — the inability to engage in any substantial gainful activity by reasons of any medically determinable physical or mental impairment which can be expected to last for a continuous period of not less than twelve months. In making a determination, the worker's impairment must be the primary reason for his inability to engage in substantial gainful activity, although his age, education and work experience are also taken into consideration. 1.19.2 "Handicapped" shall mean — a person is determined to have an impairment which (i) is expected to be of long continued and indefinite durations, (ii) substantially impedes his ability to live independently, and (iii) is of such nature that such disability could be improved by more suitable housing conditions. SECTION 2. RESPONSIBILITIES OF,CONTRACTOR. 2.01 Overall Project Performance 2.01.1 The Contractor shall use the $50,000.00 in CDBG funds for the modification of owner-occupied and rental properties to assist with barrier removal in ten (10) units on scattered sites within the Omaha city limits owned or rented by qualified low- and moderate-income households whose annual household income is 80% and below the Median Family Income as defined and periodically updated by HUD. (See Exhibit "D") CDBG funds for each Authorized Project shall not exceed $5,000.00 subject to waiver as defined in Section 1.17. 2.01.2 Total Total Total Low/Moderate Project Urfts Assisted Units Income Units 10 10 10 2.01.3 Number of Maximum Percent of Area Low/Moderate Households Median-Income Permitted 10 80% 2.02 Project Budget 2.02.1 The Contractor asserts that the funding sources and amounts listed below are committed as of this date or will be committed to the Project prior to loan closing with the City. FY 2017 CDBG Funds $ 50,000.00 9 Foundation Grants and League matching funds $ 98,517.00 Estimated Project Cost $148,517.00 2.02.2 The Contractor shall provide written reports of any private or public funds that may be leveraged for Project activities during the term of this Agreement in addition to the CDBG funds detailed above. 2.03 Term of the Agreement 2.03.1 This Agreement shall commence January 1, 2018, and shall be in full force and effect and shall end on March 31, 2019. Levels of Project Performance stated in Section 2.01 and 2.02 herein shall be completed as of March 31, 2019. SECTION 3. CONDITIONS FOR RECEIPT OF CITY FINANCING. 3.01 Documents Required by City. In no event shall the City assume any obligation to make any or all of the above-referenced funding available; nor shall the City incur any liability hereunder, unless and until the Contractor has submitted for and received the prior approval of the Director of all the documents listed below. 3.01.1 Contracts. .The Contractor shall submit duly executed for all Construction Work to the Director for approval prior to the start of construction. 3.01.2 Plan Submissions. Contractor shall submit all plans, •working drawings and/or specifications necessary or incidental to this Project to the City Construction Specialist for review prior to the start of Construction Work on each Property. 3.01.3 Environmental Review Tier II Checklist/Review Form. Contractor shall submit to the City a complete Environmental Review Tier II Checklist/Review Form and Environmental Conditions Form for review prior to the start of Construction Work on each Property (Exhibit"O"). 3.01.4 Evidence of Leveraged/Matching Funds. Contractor shall provide written evidence that funds detailed in the Project Budget described in Section 2.02 herein have been committed or secured for this Project. This evidence shall be submitted throughout the Term of the Agreement as other funds are leveraged for Approved Projects. 3.01.5 Minority/Women Owned Business Enterprise Plan. Contractor shall submit to the Director for review and approval a minority and women business participation plan, which discusses economic development and employment opportunities. This plan shall ensure that the Contractor and its subcontractors will make their best efforts to ensure that construction services, contracts and employment 10 opportunities are affirmatively marketed to women and members of minority groups. 3.01.6 Eligible Contractors. Contractor shall obtain a certificate from each contractor or subcontractor to be used on this Project to the effect that each contractor or subcontractor has not been disbarred or disqualified by HUD (24 CFR Part 5). The Director shall approve all contractors and subcontractors prior to being hired by the Contractor. 3.02 Funding Compliance Deadline. In the event that all conditions of funding are not met on or before December 31, 2017, then this Agreement shall automatically become null and void and the City shall not be deemed to have assumed any obligation or liability hereunder. Upon the sole discretion of the Director, this date may be extended. 3.03 Use Restrictions. Contractor agrees that: 3.03.1 Each of the Properties assisted with CDBG funds pursuant to this Agreement is the principal place of residence of each household who qualifies as a Low- and Moderate- Income household at the time of barrier removal modification. 3.03.2 In no event shall any person or household be permanently displaced from the Property as a result of a barrier removal Approved Project. SECTION 4. • PROJECT RESPONSIBILITIES OF CONTRACTOR 4.01 Eligible Use of Funds. The Contractor does hereby certify, contract and agree that any and all funding obtained or made available hereunder shall be used solely and exclusively for the purposes described in the Scope of Work and Operating Budget (Exhibit "E") attached hereto and incorporated herein as though fully set forth. (Total of $50,000.00 consisting of $45,000.00 for services rendered and $5,000.00 representing 10%project delivery cost). 4.01.1 Ineligible Uses. Funding shall not be provided to Contractor for ineligible uses. Properties assisted are not permitted to be temporary or second residences for Clients. Any costs for ineligible uses shall be paid by the Contractor. 4.02 Terms and Conditions. The Contractor shall abide by all terms and conditions of this Agreement and shall be responsible for the security and maintenance of the sites during the Construction Work on Properties as described in Section 1.14 herein. 4.03 Breach of Agreement. If, through breach of this Agreement, the Contractor fails to obtain a satisfactory construction completion compliance letter from the City, all funds expended on ineligible Construction Work on Properties shall be 11 ineligible for reimbursement to the Contractor. In the event the Contractor received CDBG funds for Construction Work that was subsequently determined to be ineligible, the Contractor shall promptly return such funds to the City. 4.04 Lien Waivers. Contractor agrees to obtain the appropriate lien waivers prior to each construction payment. 4.05 Ineligible Costs. The Contractor shall be responsible for payment of any Project costs that exceed those specified in this Agreement. 4.06 Lead-Based Paint Prohibition. Contractor shall not use lead-based paint in the performance of this Agreement, including the performance of any subcontractor (24 CFR 570.608 and 24 CFR 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 Contractor further agrees to abide by Federal requirements regarding lead-based paint poison prevention. 4.07 Ongoing Property Restrictions. During the construction period and the term of this Agreement and that part of any grant for an Approved Project, the Contractor shall: 4.07.1 Ensure the property is maintained in a safe and sanitary condition at all times. 4.07.2 Ensure that the Conditions for Landlords and the Conditions for Owners as specified in the Barrier Removal Program Guidelines Scope of Work(Exhibit"B") are satisfied. 4.08 Property Standards (24 CFR 92.251). During the construction period and after completion of Construction Work, the Contractor shall ensure that all work performed and the Construction Work meets all state, federal and local laws, ordinances, regulations and codes, including but not limited to, Section 8 Housing Quality Standards for Existing Homes (HQS) as established by HUD, the City of Omaha Property Rehabilitation Standards (PRS), and accessibility requirements, where applicable. 4.09 Affirmative Marketing Policy. The Contractor agrees to comply with the City's Affirmative Marketing 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 to the extent practicable. In marketing, the Contractor shall also conform to the nondiscrimination provisions hereinafter set forth in Section 5.06.1.2. 4.10 Contractors' Insurance and Workers' Compensation. The Contractor or its subcontractors shall submit Certificates of Insurance in favor of the City for review and approval by the Director. The insurance coverage shall include at a 12 minimum, $200,000.00 bodily injury or death, $200,000.00 property damage and $200,000.00 pollutant liability for lead-based paint hazard reduction work, and Workers' Compensation. 4.11 Performance and Labor Material Payment Bond and/or an Irrevocable Letter of Credit. For all contracts exceeding $5,000.00 initial contract amount, the Contractor 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 Contractor or all subcontractors in an aggregate amount of the contract bid. The Bonds and/or Letters of Credit shall be in favor of the City and shall be submitted to the Director for review and approval. The Director reserves the right to reject the Letters of Credit and Choice of Surety of the Bonds. Upon written request by the Contractor, this requirement may be waived by the Director on a case by case basis. SECTION 5. GENERAL ADMINISTRATION REQUIREMENTS OF CONTRACTOR. 5.01 Financial Management. 5.01.1 Accounting Standards. The Contractor agrees to comply with 2 CFR, Part 215 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 "C", attached hereto and incorporated herein as though fully set forth). 5.01.2 Cost Principles. The Contractor shall comply with the requirements and the standards of 2 CFR, Part 230, "Cost Principles for Non- profit Organizations" (Exhibit "G"), and with the requirements of 2 CFR, Part 215 (Exhibit "C"). Both Exhibits are attached hereto and incorporated herein as though fully set forth. 5.01.3 Audits. The Contractor shall comply with all provisions and regulations of the Community Development Block Grant Program and have an annual audit completed in compliance with 2 CFR, Part 200.5, 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 Contractor/Subrecipient expends total federal funds over $750,000.00 in each fiscal year. A limited-scope audit may be allowable provided the auditor conducts the audit in accordance with generally accepted auditing standards and the Contractor expends less than $750,000.00 in each fiscal year. 5.01.3.1 Any deficiencies noted in audit reports must be fully cleared by the Contractor within 30 days after receipt of 13 audit by the Contractor. Failure of the Contractor to comply with the above audit requirements will constitute a violation of this Agreement and may result in the withholding of future payments and may constitute a default subject to default remedies referenced herein in Section 9. 5.02 Documentation and Record-Keeping. All Contractor records with respect to any matters covered in this Agreement shall be made available to the City, its designees or the Federal Government, at any time during normal business hours, as often as the City deems necessary, to audit, examine, and make excerpts or transcripts of all relevant data. Any contract entered into by the Contractor with any contractor or subcontractors shall include this Section to ensure said access. 5.03 Reports. The Contractor shall submit to the City the following reports in accordance with 24 CFR 570.506 with the submission timelines as specified. 5.03.01 Project Performance Reports. The Contractor shall provide reports to the Director (AIA G702 Form or comparable report) describing the Project Performance and any significant problems and/or delays in construction on this Project. Reports will be submitted at the time of each reimbursement request, or by the 15th day of each month if no reimbursement request is made before the 15th day of the month (or upon written request from the Director, but no more frequently than monthly). The performance reports are required until such time as all Construction Work is completed and the City issues the final reimbursement to the Contractor. 5.03.1.1 Completed "Authorized Project" Reports. Contractor shall provide to the Director reports, prior to any final reimbursement request for Construction Work as follows: Demographic Summary Report identifying the Authorized Project address, annual income of the household, household income as a percent of Median Family Income (MFI) as determined by HUD, household size, gender of head of household member, age of head of household, race/ethnicity of head of household, and disability status of any household member. Completed Project Report identifying the Authorized Project address, grant amount, additional funding amount if any, type of work performed, evidence of permits as applicable, evidence of appropriate lien waivers and subcontractor's name. Attached as Exhibit "I" and incorporated herein by this reference as though fully set forth, are samples of the 14 Demographic Summary Report and Completed Project Report. 5.04 Financial Status Reports. Contractor shall submit financial status reports (OMB Circular A-110) (Exhibit "C") 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 "L", and incorporated herein by this reference as though fully set forth, is a sample financial status report. 5.05 Record Retention. The Contractor and its subcontractors shall maintain such records and accounts, including property, personnel and financial records, as are deemed necessary by the City to assure a proper accounting for all expenses. The Comptroller General of the United States, or any of their duly authorized representatives, or any duly authorized representatives of the City, as approved by the Director, shall have access to any books, documents, papers, records and accounts of the Contractor or subcontractors which are directly pertinent to this Project for the purpose of making audit, examination, excerpts and transcriptions. Such records and accounts shall be retained for five (5) years after expiration of the Agreement (2 CFR, Part 215) (Exhibit "C"). For this Agreement, records shall be retained until December 31, 2020. In the event the Term of the Agreement would be extended, the timeframe for record retention would be extended correspondingly. 5.06 Personnel and Participant Conditions 5.06.1 Contract Compliance Clause 5.06.1.1 Section 10-192 of the Omaha Municipal Code, Equal Employment Opportunity Clause. (Exhibit "Q") The Contractor and its subcontractors shall not discriminate against any employee or applicant for employment because of race, religion, color, sex, age, national origin, familial or handicap status. As used herein, the word "treated" shall mean and include, without limitation, the following: recruited, whether by advertising or by other means; compensated; selected for training, including apprenticeship; promoted; upgraded; demoted; downgraded; transferred; laid off; and terminated. The Contractor and its subcontractors agree to and shall post in conspicuous places, available to employees and applicants for employment, notices to be provided by the contracting officers setting forth the provisions of this nondiscrimination clause. 5.06.1.2 The Contractor and its subcontractors shall, in all solicitations or advertisements for employees placed by 15 or on behalf of the contractor, state that all qualified applicants will receive consideration for employment without regard to race, religion, color, sex, age, national origin, familial or handicap status. 5.06.1.3 The Contractor and its subcontractors shall' send to each representative of workers with which he has a collective bargaining agreement or other contract or understanding a notice advising the labor union or workers' representative of the contractor's commitments under the equal employment opportunity clause of the city and shall post copies of the notice in conspicuous places available to employees and applicants for employment. 5.06.1.4 The Contractor and its subcontractors shall furnish to the Human Rights and Relations Department all federal forms containing the information and reports required by the federal government for federal contracts under federal rules and regulations, including the information required by sections 10-192 to 10-194, inclusive, of the Omaha Municipal Code and shall permit reasonable access to his records. Records accessible to the Human Rights and Relations Department shall be those which related to Paragraphs 5.06.1.1 through 5.06.1.7 of this subsection and only after reasonable notice is given the contractor. The purpose of this provision is to provide for • investigation to ascertain compliance with the program provided herein. 5.06.1.5 The Contractor and its subcontractors shall take such actions with respect to any subcontractor as the City may direct as a means of enforcing the provisions of Paragraphs 5.06.1.1 through 5.06.1.7 herein, including penalties and sanctions for noncompliance; however, in the event the contractor becomes involved in or is threatened with litigation as the result of such directions by the City, the City will enter into such litigation as is necessary to protect the interests of the City and to effectuate the provisions of this division, and, in the case of contracts receiving federal assistance, the contractor or the City may request the United States to enter into such litigation to protect the interests of the United States. 5.06.1.6 The Contractor and its subcontractors shall file and shall cause his subcontractors, if any, to file compliance reports with the contractor in the same form and to the extent as required by the federal government for federal contracts under federal rules and regulations. Such 16 compliance reports shall be filed with the City's Human Rights and Relations Department. Compliance reports filed at such times as directed shall contain information as to the employment practices, policies, programs and statistics of the Contractor and his subcontractors. 5.06.1.7 The Contractor and its subcontractors shall include the provisions of Paragraphs 5.06.1.1 through 5.06.1.7 of this section, "Equal Employment Opportunity Clause," and Section 10-193 in every contract, subcontract or purchase order so that such provisions will be binding upon each subcontractor or vendor. (Code 1980, Section 10-192; Ord. No. 35344, Sections 1, 9-26-00) 5.06.2 Workers' Compensation. The Contractor shall provide Workers' Compensation Insurance coverage for all employees involved in the performance in this Agreement. 5.06.3 Employment Insurance and Bonding. The Contractor shall purchase a blanket fidelity bond covering all employees, at a minimum, in an amount equal to cash advances from the City. The Contractor shall comply with bonding and insurance requirements of 2 CFR, Part 215 (Exhibit"C"), Bonding and Insurance. 5.06.4 Minority/Women Owned Business Enterprise Plan. The Contractor shall make its best efforts to ensure that construction services, contracts and employment opportunities are affirmatively marketed to women and members of minority groups. As used in this Agreement, the term "women and members of minority groups" means a business at least fifty-one percent (51%) owned and controlled by minority group members or women. Contractor will agree to adopt the City's MBE/WBE Enterprise Plan. (Exhibit"J") 5.06.5 Section 3 —Employment of Low-Income Persons (Section 3 of HUD Act of 68, as amended, 1 U.S.C. 1701u). The Contractor shall make its best efforts to comply with Section 3. (Exhibit "K") The purpose of Section 3 is to ensure that employment and other economic opportunities generated by HUD assistance or HUD-assisted projects covered by Section 3 shall, to the greatest extent feasible, be directed to low- and very low-income persons, particularly persons who are recipients of HUD assistance for housing. 5.06.6 Conflict of Interest. The Contractor agrees to abide by the provisions of 24 CFR 92.356 with respect to conflicts of interest, and covenants that it presently has financial interest and shall not acquire any financial interest, direct or indirect, which would conflict in any manner or degree with the performance of services required under this Agreement. The Contractor further covenants that in the 17 performance of this Agreement no person having such a financial interest shall be employed or retained by the Contractor hereunder. These conflict of interest provisions apply to any person who is an employee, agent, consultant, officer or elected official or appointed official of the City or any designated public agencies or subrecipients which are receiving funds under the CDBG program. 5.06.7 Attestation of Citizenship. To comply with Neb. Rev. Stat. 4-108 through 4-114, the Contractor agrees to comply with the requirements of 5.06.7.1 and 5.06.7.2. 5.06.7.1 The Contractor shall include the following language in all contracts and subcontracts for the physical performance of services: "The Contractor is required and hereby agrees to use a federal immigration,verification system to determine the work eligibility status of new employees physically performing services within the State of Nebraska. A federal immigration verification system means the electronic verification of the work authorization program authorized by the illegal Immigration Reform and Immigrant Responsibility Act of 1996, 8 U.S.C. 1324a, known as the E-Verify Program, or an equivalent federal program designated by the United States Department of Homeland Security or other federal agency authorized to verify the work eligibility status of a newly hired employee. If the Contractor is an individual or sole proprietorship, the following applies: a) The Contractor must complete the United States Citizenship Attestation Form available on the Department of Administrative Services website at www.das.state.ne.us. b) If the Contractor indicates on such attestation form that he or she is a qualified alien, the Contractor agrees to provide the U.S. Citizenship and Immigration Services documentation required to verify the Contractor's lawful presence in the United States using the Systematic Alien • Verification for Entitlements (SAVE) Program. c) The Contractor understands and agrees that lawful presence in the United States is required and the Contractor may be disqualified or the contract terminated if such lawful presence cannot be verified as required by Neb. Rev. Stat. 4-108." 18 5.06.7.2 The Contractor shall have each adult member of the household applying for a benefit under this agreement execute a United States Citizenship Attestation Form For Public Benefit (Exhibit "M") verifying eligibility status for the purposes of receiving a public benefit. The Contractor shall maintain aggregate records for the duration of the contract showing: (a) the number of applicants for public benefits under this agreement; and (b) the number of applicants rejected pursuant to the lawful presence requirement set forth in the above-referenced Nebraska statutes. Further the Contractor shall provide a summary report to the City no later than December 15th each calendar year reflecting this applicant data for such calendar year. 5.06.8 Employee Classification Act. To comply with the Nebraska Employee Classification Act, all general and subcontractors who perform construction or delivery service pursuant to this contract shall submit to the City an Affidavit For Employee Classification Act (Exhibit "N"). attesting that (1) each.individual performing services for such contractor is properly classified under the Nebraska Employee Classification Act, 2010 LB 563 ("the Act"), (2) such contractor has completed a federal I-9 immigration form and has such form on file for each employee performing services, (3) such contractor has complied with Neb. Rev. Stat. section 4-114 (federal immigration verification system), (4) such contractor has no reasonable basis to believe that any individual performing services for such contractor is an undocumented worker, and (5) as of the time of the contract, such contractor is not barred from contracting with the state or any political subdivision pursuant to the Act. The contractor shall follow the provisions of the Act. A violation of the Act by a contractor is grounds for rescission of the contract by the City. 5.07 Match Funds. The Contractor will provide documentation to the City showing all non-federal funds in the Project. This documentation should include the following: a. source of funds (additional documentation as needed) b. amount of funds c. date funds provided d. designation (name) of funds e. purpose of funds. The documentation shall be submitted to the City annually no later than January 31 St of the following year. 19 5.08 Limited English Proficiency (LEP). It is the policy of the City to take reasonable steps to provide meaningful access to its programs and activities for persons with Limited English Proficiency (LEP) in accord with Executive Order 13166 titled, "Improving Access to Services by Persons with Limited English Proficiency". The City's policy is to ensure that staff and subrecipients will communicate effectively with LEP individuals, and LEP individuals will have access to programs and information. The City is committed to complying with federal and state requirements in providing access to this program and its activities for LEP persons. SECTION 6. CONTRACTOR'S COMPLIANCE WITH OTHER FEDERAL REGULATIONS 6.01 Environmental Review. The Contractor agrees to comply with the following regulations insofar as they apply to the performance of this Agreement, including the submission of a Tier II Checklist/Review Form for each property prior to the start of Construction Work. (Exhibit"0") 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 CFR, Part 50, as amended. 6.01.4 National Environmental Policy Act of 1969. 6.01.5 HUD Environmental Review Procedures (24 CFR 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 Lead-Based Paint Regulations at 24 CFR 570.608 and 24CFR Part 35 and in particular Sub-Part B thereof. Such regulations pertain to all HUD-assisted housing and require that all owners, prospective owners, and tenants of properties construction prior to 1978 be properly notified that such properties may include lead-based paint and require specific treatments according to the amount of HUD. funding allocated to the Project. 6.01.8 Historic Preservation requirements set forth in the National Historic Preservation Act of 1966, as amended (16 U.S.C. 470) and the procedures set forth in 36 CFR, Part 800, Advisory Council on 20 Historic Preservation Procedures for Protection of Historic Properties, insofar as they apply to the performance of this Agreement. In general, this requires concurrence from the State Historic Preservation Office for all rehabilitation and demolition of historic properties that are 45 years old or older or that are included on a Federal, State or local historic property list. 6.02 Uniform Relocation Act. The Contractor shall comply with the applicable regulations of the Uniform Relocation Act of 1970, as amended (URA) (42 U.S.C. 4601-4655), or Section 104 (d) of the Housing and Community Development Act of 1974, as amended (Section 104 (d)), which require relocation assistance be provided to resident owners, tenants, businesses and other occupants that are displaced as a result of a federally-assisted project. In the event that the Contractor or its agent displaces any tenant-occupant of the property, it shall immediately notify the City in writing of the circumstances surrounding said displacement and comply with 24 CFR 92.353. 6.03 Other Program Requirements. The Contractor shall be required to carry out each activity of this Agreement in compliance with all Federal laws and regulations described in Subpart "K" of the CDBG Program Entitlement Grant Regulations Handbook 6500. 6.04 Federal Funding Accountability and Transparency Act. The Developer shall comply with the applicable regulations of the Federal Funding Accountability and Transparency Act (FAFTA) (75 Fed RgSS663) (September 14, 2010) (to be codified at 2 CFR, Part 170). Developer shall complete and provide to the City (Exhibit"R"). SECTION 7. RESPONSIBILITIES OF THE CITY. 7.01 Performance Monitoring. The City will monitor the performance standards of the Contractor as stated herein. Substandard performance as determined by the City will constitute non-compliance with this Agreement. If action to correct such substandard performance is not taken by the Contractor within a reasonable period of time after being notified by the City, contract suspension or termination procedures may be initiated. 7.01.1 Report Reviews. The City shall monitor and review monthly progress and quarterly financial reports of Contractor. 7.01.2 On-site Monitoring. The City shall conduct on-site monitoring visits as necessary during the Term of the Agreement. Site visits may include visits with program recipients. Such visits shall be scheduled in advance with the Contractor to allow the Contractor to give at least 24 hours-notice to program participants of the possibility of a monitoring visit to the property. 21 7.01.3 Technical Assistance. The City shall provide technical assistance to the Contractor regarding determination of eligibility, determination of extent of modifications needed, lead paint requirements and to ensure compliance with all state, federal and local laws, ordinance, regulations and codes, including but not limited to housing and zoning codes, and accessibility requirements. 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 $50,000.00 of FY 2015 CDBG Program funds. The payment of these funds is subject to and conditioned upon actual receipt by the City of the same. Should adequate funding not be available to the City, the City shall notify the Contractor as soon as reasonably possible and the Agreement will be terminated. 7.02.1 Funds Allocated to the Contractor. Funds allocated to the Contractor shall be in the form of a grant for the purposes set forth in this Agreement. Payments will be contingent on Duties and Conditions specified herein. Draw downs for the payment of eligible expenses shall be made on a reimbursement basis. 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 Contractor has timely and fully complied with its duties and obligations hereunder. No payments shall be made for any work, labor, material or expenses incurred the Director deems to be: 7.02.2.1 Not in conformance with applicable state, federal and/or local laws, including but not limited to, the building, plumbing and/or electrical codes; or, 7.02.2.2 Not in conformance with all plans, working drawings and/or specifications as approved. 7.02.2.3 Unacceptable or substandard; or, 7.02.2.4 Not in accordance with this Agreement or related contracts as approved for this Project. 7.03 Inspections. The City may perform periodic inspections at any reasonable time to ensure compliance with this Agreement. The City shall perform final inspections to certify completion of each Authorized Project prior to the disbursement of grant proceeds. 22 SECTION 8. MUTUAL AGREEMENTS BETWEEN CITY AND CONTRACTOR 8.01 Release of Information Laws. The Contractor specifically hereby states, agrees and certifies that it is familiar with the limited purpose set forth in the Federal Laws, Rules and Regulations, and in the laws of the State of Nebraska, for which personal information requested may be used and that the information received will be used solely for those limited purposes and not to harass, degrade or humiliate any person. The information released shall be used for the limited purposes stated, and the Contractor further agrees to indemnify and hold harmless the City of Omaha for any liability arising out of the improper use by the Contractor of information provided. 8.02 Applicable Laws. Parties to this Agreement shall conform to all existing and applicable City ordinances, resolutions, state laws, federal laws, and all existing and applicable rules and regulations. Nebraska law will govern the term and the performance under this Agreement. 8.03 Interest of the City. Pursuant to Section 8.05 of the Home Rule Charter, no elected official or any officer or employee of the City shall have a financial interest, direct or indirect, in any City agreement. Any violation of this section with the knowledge of the person or corporation contracting with the City shall render the Agreement voidable by the Mayor or Council. 8.04 Independent Contractor. Nothing contained in this Agreement is intended to, or shall be construed in any manner, as creating or establishing the relationship of employer/employee between the parties. The Contractor shall at all times remain an independent contractor with respect to the services to be performed under this Agreement. The City shall be exempt from payment of all Unemployment Compensation, FICA, retirement, life and/or medical insurance and Workers' Compensation Insurance as the Contractor is an Independent Contractor. This shall not be construed to mean that the Contractor cannot use Grant funds for payment of such benefits for employees of the Contractor engaged in operation of the Barrier Removal Program. • 8.05 Project Roles. The Contractor shall ensure that the Project meets the objectives stated herein. The City has selected the Contractor to assist in the Project since it is consistent with the Consolidated Plan. With respect to this Project, the City is not acting as the Contractor's architect or engineer. The City makes no warranties, express or implied, as to the Construction Work. The City owes no duty to the Contractor 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. 23 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 Contractor may not assign its rights or obligations under this Agreement without the express prior written consent of the City; except that the Mayor may, without City Council approval, approve, in writing, the assignment to a limited partnership so long as the Contractor is and remains a general partner. 8.10 Strict Compliance. All provisions of this Agreement and each and every document that shall be attached shall be strictly complied with as written, and no substitution or change shall be made upon written direction from authorized representatives of the parties. 8.11 Termination. This Agreement may be suspended or terminated in accordance with 24 CFR 85.43, Enforcement or CFR 85.44, Termination for Convenience (Exhibit "P", 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 Contractor shall transfer to the City of Omaha any CDBG funds on hand at the time of expiration and any accounts receivable attributable to the use of CDBG funds (24 CFR 570.503(b)(8). 8.13 Indemnification. The Contractor shall indemnify and hold the City harmless from and against: (1) any and all claims arising from contracts between the Contractor and third parties made to effectuate the purposes of this Agreement; and, (2) any and all claims, liabilities or damages arising from the preparation or presentation of any of the work covered by this Agreement. 8.14 Unenforceable Provisions. Any provision of this Agreement, which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be in effect to the extent of such prohibition or enforceability without invalidating the remaining provisions hereof or affecting the validity or enforceability of such provision in any other jurisdiction. 8.15 Disclosure of Lobbying. The Contractor 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 Contractor, to any person for influencing or attempting to influence an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding 24 of any Federal contract, the making of any Federal grant, the making of any Federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment or modification of any Federal contract, grant, loan, or cooperative agreement. 8.15.2 If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence • an officer or employee of any agency, a Member of Congress, an officer of employee of Congress, or an employee of a Member of Congress in connection with this Federal contract, grant, loan, or cooperative agreement, the Contractor shall complete and submit standard Form-LLL, "Disclosure Form to Report Lobbying", in accordance with its instructions. 8.15.3 The language of this certification shall be included in the award documents for all subawards at all tiers, (including subcontracts, subgrants, and contracts under grants, loans, and cooperative agreements) and that all subrecipients shall certify and disclose accordingly. 8.16 Notices. The City and the Contractor hereby expressly agree that for purposes of notice, including legal service or process, during the term of this Agreement, and for the period of any applicable statute of limitations thereafter, the following named individuals shall be authorized representatives of the parties: 1) City: David K. Fanslau Planning Director City of Omaha Planning Department 1819 Farnam Street, Room 1111 Omaha,Nebraska 68183 2) Contractor: League of Human Dignity, Inc., a Nebraska Non-profit Corporation Mike Schafer, Chief Executive Officer 5513 Center Street Omaha,Nebraska 68106 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. 25 • SECTION 9. DEFAULT PROVISIONS. 9.01 Remedies. If, through any cause, the Contractor shall fail to fulfill in a timely and proper manner any obligations under this Agreement, or violate any of the covenants, representations or agreements hereof, the City may upon written notice terminate this Agreement or such parts thereof as to this Agreement, and may initiate foreclosure proceedings for any damages caused to the City by reasons of such default and termination. IN WITNESS WHEREOF, the parties have executed this Agreement as of the date indicated below: LEAGUE OF HUMAN DIGNITY, INC., WITNESS: a Nebraska Non-profit Corporation By: 4441//y,/444- 7---- Michael Schagr, Chief Executive Officer (3 ( 94 13,/1-1;v4 Date Da 26 ATTEST: CITY OF OMAHA: LEL/40 -/Gf City Cle of ity of Omaha Date Mayor of the City of Omaha s ate APPROVED AS TO FORM: -)71 ((ir, ? ASSISTANT CITY ATTORNEY Date 2658 dlh 27 • Barrier Removal Program SCHEDULE OF EXHIBITS Exhibit Agreement Location Description • A 1.02 League of Human Dignity, Inc., Articles of Incorporation, By-Laws, Corporate Resolution B 1.08, 1.16, 1.17, 4.07.2 Scope of Work/Program Guidelines C 1.13, 5.01.1, 5.01.2, 2 CFR, Part 215 5.04, 5.05, 5.06.3 D 1.15, 2.01.1, 5.03.1.1 Median Family Income Chart and City of Omaha Definition of Income Affidavit E 1.18 Definition—Program Income F 4.09 Affirmative Marketing Policy G 5.01.2 2 CFR, Part 230 H 5.01.3 2CFR, Part200.5 I 5.03 Demographic Summary Report J 5.06.4 Minority and Women Business Plan K 5.06.5 Section 3 Clause L 5.04 Financial Status Reports M 5.06.7.2 United States Citizenship Attestation Form for Public Benefit N 5.06.8 Affidavit for Employee Classification Act 0 3.01.3, 6.01 Environmental Review Tier II Checklist/Review Form P 8.11 Termination—24 CFR 85.43 — 85.44 Q 5.06.1.1 Equal Employment Opportunity Clause R 6.04 Federal Funding Accountability and Transparency Act 28 ATTACHMENTS: (a)League of Human Dignity Articles of Incorporation and Bylaws: I- • • *11 - _ BRASK f�tto„-y - - -054:it,'" Its„ ......793.• • • • - .Av.,:el-0 t ..../la .„... aff. ''fir -li�rr .. :-:: . - • �rf- rf `- �;I? [P1I e I o 31, Al f t N rmetiitt, .errIltlj lif 5.tafg. 'if tip • • -.- fti. of NefirtrAtt hit Jrsr Lrl1 fgrtrf1 - • � • the attached is a true and correct copy of the Articles of Incorporation of • - r,FAGUE OF BU DIGNITY C. • with its registered office located in Lincoln:, • Nebraska, as filed and recorded in this office on March 2B, 1972_ - • I further certify that said corporation _ 'is in good standing as of this date. _ • • • • C . .€%I fig li fir ` ff I xrre *Mail" f • - ;41--=;:ter=_ :4..,_ 1 :Vv— r Tff t r. i',�ir�711' "`fg1.''•�y:!�'r:='��:h-;tom .'•'•+•`'��,:.':i�! ,7�.Msc}�;�`jl:�?��" �`�.Z2�2��Z . ��i>�J+'a• '�.'•5 '^�tNil ::[S: =i :rF��-zJ*`�=TJ•'�t.�f`^ hag ,-rt•• �-` +r:t+L: ..17c_�: 'Ui:-••.t r..ai:t t- _I: S4:nr� fc{ TTT'1a • 3��'v._:Lr�'i>ly''�3r'�•^{_o `� L.. :��iT--`t '�Y'�j:�9� rc�..-� -j': fir?:'• , ,_-7-•s�ti_�.r:::�_?�;:-� •.. t.. � -=='`' _ .y�=s, �:7 r�� 4i :1_�,•�. .;�=-�^>-_,. `F �1'F" �T ZIf .£Y-�X` T�� {{� MTh' rr—s ZT _�X � I .ae -: .-y .17? ?,, I.-10:p ., _4i t;T=': ; —;- ... . ., . V: ....-- ..-'77..:.'..:-...."•" ARTICLES OF 7NCOR.PoRATION . . . . !,'; ,• OF ;.,.. •.--," • :,; •i• ., LEAGUE CF HUMAN DIGNITY, INC. --.: • - -., ::... -.: . The undersigned, acting as incorporators of a corporation under ..!.•-•.. ...- 2.f,:. the Nebraska NonrProfit Corporation Act, adopt the following Articles . 4 ''' ; Je.: . of Incorporation for such corporation: •=le. ' . ...: -: ,•t;•• t!-- FIRST: The name of the corporation is the League of Human • 1' ,7 '.•: , • ,i4i'.: . • .3..". Dignity, Inc. ,.. :-.• ,,,- ; *..,% . • • .I-:,,I.,• SECOND: The period of its duration is perpetual. . -.6,,.. . •• •!.• .:- z: : 1/..,•-i. ' THIRD: The purposes of the League of Human Dignity, inc. for - allk:h • . wn .r: _o.t.P.'''.:.• . which the corporation is organized are: . •', - • ...'W •:. ..f (a) To foster and promote the social, educational and .: •7, .4.4:;-. . atv1Ti:t...e. -411g . economical betterment of the physically handicapped and • Itoz. • :::;- -•'. i engage in activitiesto accomplish this purpose. IV- - W . . (b) That said League of Human Dignity, Inc. is a not for . • . . 111 profit corporation and is thereby bound by the statutes i .. .: • of the State of Nebraska applicable thereto and shall be .7 ..; - i . . 4 If.1.,•:. • • bound by said provisions in the accomplishment of the I goals and purposes of said corpore;:ion. . - , • - Aiil • I ..V"k..;.' FOURTH: Provisions for the regulations of the Internal affairs • 4 , . - a .,,,. .•.. •,- or the corporation including provisions for the distri- - ,-, ; ti.. . . ' '.-- - tw bution of aEsets on dissolution or final liquidation are: • • ;q : ..1 (a) The affairs of the League of Human Dignity, Inc. •-:-. .: P 7. • I'd ' ' . ' .... ..-. . . • shall be conducted and managed by an initial Board of •:: Directors, which directors shall be elected as provided in the by-laws of the League of Human Dignity, Inc . . (b) In the event of the dissolution of the League of . , • . . i :; • • :.i•' :: ....! • ,,, . • :t• , ••:::-: - I 11 • -,<;.: ' . i Human Dignity, Ino. , any property, money, stooks, bonds, • AI .. -e:i...1 • or any thing of valve shall be equally distributed among -.. . :.. 2,....- •-organizations-serving .the-physically-handioapped-as---- "- • • :7: -- - i PSC A4.•-74;:f • .. .de termined. by the.Board-of-Directors- of-the League of- •:!•• . 1 - ., • .Y. -- ---- 1. • • ,'-'4'-'1.-. ••••:' --- • Human Dignity, Inc. 14... • • ...:1 • (c) The Board .of Directors of the League of Human .... -:. .,ac Dignity, Ino. shall adopt by-laws for the regulation . 4. - - and management of said corporation. • T-IiP..::: • .1E.,:. (d) The League of Human Dignity, Inc. shall have the . 4.:. . 7.. power to acquire by purchase, gift, bequest, devise, ' nk . : .. governmental grant, or any lawful means, money and prop.. . . 4.; -fift, mrtv. ra!al mi.. t% gi; ,;t• ^`. _ (ay:,A director or directors of the League of Human Dignity, :•' ' Inc, may be removed from office for misconduct or malfea- sance in office by not less than a majority vote of said '' Board of Directors. } FIFTH: The address of the initial registered office of the corpor- e . ation is X.W.C,A. Building„ 1432 'N' Street, Lincoln, r, Nebraska, E8506, and the nave of the initial registered fit:.. ,.. ` agent is James D. Paimon, 1432 'N' Street, Lincoln, . = # • Nebraska, 68508. �, lgti .'. SIXTH: The number of directors constituting the initial Board ' • of Directors of the corporation 'is five, and. the names fir�: ' and addresses of the persons who are to serve as the <= • ' ' ' . initial directors are: i i 'Name • Address 1 Yf::. a.�;4 Nancy Erickson 2501 'W' St, , Apt. 417, Lincoln, Nebraska, 68$10 ! i r Harjorie' Moore 1421 'r^,' St, Apt. 1, Lincoln, Nebraska, 68$08 i i' , . : Ak Dora Jaroa 4729 Prescott, Lincoln, Nebraska, u8$U6 ix``.- Jean Stever 4446 Hillside, Lincoln, Nebraska, 68506 .2' =•..James D. Faimon 4641 Valley Rd. , Lincoln, Nebraska, 68$10 • .,- -:, __SEVENTH: The name and address of each incorporator is: i ii, L.y Name . • Address -.. •. .,. � ;:tiONancy Erickson • 2501 'N' St. , Apt, 417, Lincoln, Nebraska, 68$10 iJ '` Marjorie Moore 1421 'H' %. g r St. , Apt. 1 Lincoln, Nebraska, 68508 • � James D '•Faimon - 4b41 Valley &d, ..s i �,��`. , Lincoln, Nebraska, 68510 yet :,,y.• per.... .. •• 4. Dated. :,' 1 (i c" :. 1972 on the dayof ='': "`'... .. — •*� , 1972, before ins Dame Nancy • F -i71.7ti'EriekPO4 Marjorie Moore, and James D. Fairton, known to me to be the ' { 41' persona who have nttixed their signatures hereto. I Signatures sre. Sab.cribed'old awcra to before me • I174.1.1( Zoe-v. ' . ,;,.. .. Nancy w I- k: :ti` Qrickson .170! • i s d�ltiRill, NO3511tf/lL 5/.` `':4 t �-' . N * � Marjorie Moore • �+ ATI OP 1ff.RA$KA • oK ttcrreas n f • �• rr}�; ?ROOF OF PUBLICATION VS :a j' • •�- " Ci:^ air -s.,qG :,'` - AFFIDAVIT ,• •rip• .,r.c • State of Nebraska, Lancasti-r County, as: =4 r � ;:-, , -• • e;j __ :ti L_ =r3.:.t_-_-, being duly sworn, deposes,and says that =r• ;: .,_-ir:��1e.-. = he is an eu' for and manager of The Daily Reporter, a legal daily news- ; • �:. ,t�•- - rr��xi?��. :�• _ paper printed, published and of general circulation in the County of • �:"• .4;.e1,:• ,,,sti'"S, : -� Lancaster and State of Nebraska, and that the atta�.l±ed printed notice _`-• Ile:,...i. . was published in the said newspaper once each week ___� = + . ,,IdirpsrlegrAa P -'"• -- Irliiiii 4.0fari. Lanai. successive weeks, the first insertion having been on the 1 ` .�, day of „•r_1 A. D., 19 72__, and thereaft on '�• k ril fi a 15 19 "1"` ;.• . •: . ::,.. ., .1 -.:.�1a and that said newspaper is a Iegal newspaper under the statutes of the "r.; : •, � _•• ,: ,M State of Nebra-ka. The above facts are within my personal knowledge, r. 1. - V ...•.- lY^,.., . . - 1 'I.,' 1 %A Subscribed in my presence and sworn to -. I 4' __ • �• TM before me _'aril 15� 1972 ?z;.r i : D 1 .. .• • .-..- . 'l C, .... .. • -,....„ . , �2 .,...,..1 i - --- -- - paf_____, Public •-.' I i Printer's Fee $_1912I ';=••'. • SECRETARY'of srAT1 J`•;.: _=1°C 8 I I i • t . 1 1 i • t • I • 1---- , • i i • 1 1 f • • I I • BYLAWS_ • LEAGUE OF HUMAN DIGNITY, INCORPORATED ARTICLE I Board of Directors 1. The Board of Directors of the League of Human Dignity, Inc. shall be duly elected officers of the Lincoln.League of Human Dignity Membership Organization , which officers are: president, first vice-president, second vice-president, secretary, treasurer, and one president from each League of Human Dignity Chapter. There shall also be seven directors at-large who shall be appointed by the Chairperson of the Board of Directors of the League of Human Dignity, Inc. , with the approval of such Board of Directors for a term of two(2) years. Two (2) of the at-large members shall represent the Omaha Center for Independent Living, one (1) shall represent the Norfolk .Center for Independent Living and one(1) shall represent the Southwest Iowa Center for Independent Living. All Directors of the League of Human Dignity, Inc. shall serve without compensation. Such Board of Directors shall be comprised of not less than 60% of persons who experience a disability. 2. A quorum of the Board of Directors of the League of Human Dignity, Inc. , shall be more than one half of the members then serving and is required before action can be taken. Actions by the Board of Directors should be when possible evidenced by the passage of resolutions reflecting the intended action proposed or to be taken. 3 . The Board of Directors shall exercise supervision, hiring; and the hearing of grievances of League of Human Dignity Inc. , employees, as detailed in the League of Human Dignity, Inc: Personnel Policies. . ARTICLE II • • • • Meetin s of the Board of Directors • • 1. The Board of Directors shall' meet at. least twice annually. One such meeting shall be in August of each year. Such meeting shall have as .done of its purposes the election of officers and like organization of the Board of Directors for the opening fiscal organizational year commencing September 1 and ending August 31 the following year. • ARTICLE III Officers of the Board of Directors 1. The offices of the Board of Directors shall be chairperson, vice-chairperson, and secretary/treasurer. In the event there is • Page 2 BYLAWS LEAGUE OF HUMAN DIGNITY, INC. a vacancy in the office of the. chair, the vice-chair will assume the position of chairperson in- a temporary capacity until the ' Board of Directors elects a new chairperson by a majority vote of the Board of Directors. Other vacancies in the offices of vice- chair and secretary/treasurer shall 'be filled by appointment, by the chair with the approval of the Board of Directors. 2. Such officers shall be elected by majority vote of the Board of Directors present at the duly called August meeting. Officers shall serve for one year, or until their successors are elected. 3. Officers shall be members of the Board of Directors of the League of Human Dignity, Inc. and shall be nominated by the members of such board. The election at the option of the Board of Directors may be by ballot, or in such a manner as the Board of Directors determines at such election. 4. Board of Director Officers may be removed from office; with or without cause, by a majority vote of the League of Human Dignity, Inc. Board of Directors. ARTICLE IV Finances 1. The corporate fiscal year for the League of Human Dignity, Inc. , shall be September 1, through August 31. 2. The Board of Directors of the League of Human Dignity, Inc. , shall adopt policies and procedures for handling the various finances of the corporation which includes the expenditures of funds, establishment of bank accounts and investing of idle funds of the corporation. ARTICLE V • In accordance with Article IV of Articles of Incorporation of the League of Human Dignity, Inc. , the Board of Directors is hereby authorized to incur debt and to encumber property, real and • personal, of the League of Human Dignity, Inc. , not inconsistent with sound economic or business practice. • ARTICLE VI Amendment of B laws 1. These bylaws may be amended by majority vote of the Board of Directors of the League of Human Dignity, Inc. Page 3 . BYLAWS LEAGUE OF HUMAN DIGNITY, INC. 2. Proposed amendments to these bylaws shall be submitted in writing to each of the members of the Board of Directors at least seven (7) days prior to the meeting when such bylaws shall be considered for vote. _ ARTICLE VII Parliamentary Authority The parliamentary authority for all matters not covered by these bylaws shall be Robert's Rules of Order, as amended. • • • Amended October 1990 Amended July 22, 1992 Amended March 29, 1995 Amended January 24, 1996 SCOPE OF WORK COMMUNITY DEVELOPMENT BLOCK GRANT PROGRAM BARRIER REMOVAL PROGRAM OMAHA, NE PROGRAM GUIDELINES I. PURPOSE To assist in the removal and/or modification of barriers for low and moderate income households with at least one family member who experiences a physical disability. Projects are tailored to meet the accessibility needs of the family and are financed by a grant to the landlord/owner for structural modifications and/or a grant to the tenant for removable items. The maximum grant per tenant/consumer is $5,000, which includes a$500.00 reserve for contingency. II. SCOPE OF SERVICES The League of Human Dignity administers the Barrier Removal program consisting of barrier removal grants and outreach. Assistance is available on a city-wide basis. III. BARRIER REMOVAL GRANT PROGRAM A. Eligibility Criteria Owner/occupant households and renters may be eligible to participate in the Barrier Removal Program if: 1. Your household income is at or below 80% of the "Median Income by Family Size"as published by HUD to reflect the current or most recent income level statistics (See Attachment"A"); and, 2. Real estate taxes and special assessments on the property are current; and 3. One or more family member has a mobility impairment or disability which impedes his or her ability to live independently without modification to the residential unit; and 4. You are not a City employee. 11°1121 Revised April 2012 Landlord/owners and foster or boarding homeowners may be eligible to participate in the Barrier Removal Program if: 1. You provide a rental unit to an eligible tenant; and, 2. Real estate taxes and special assessments on the property are current; and 3. You are not a City employee. Persons living in rental units shall be responsible for contacting their landlord to discuss the possibility of making their units accessible. Landlord/owners must accept the conditions specified in Section H,I,J and K. B. Definitions In order to provide guidance and consistency,the Social Security Administration's disability definition and the Title I Housing and Community Development Act definition of who is considered handicapped and/or disabled will be used. 1. Disabled: The inability to engage in any substantial gainful activity by reason of any medically determined physical or mental impairment which can be expected to last for a continuous period of not less than twelve months. In making a determination, the worker's impairment must be the primary reason for his inability to engage in substantial gainful activity, although his age, education, and work experience are also taken into consideration. 2. Handicapped: A person is determined to have an impairment which(i)is expected to be of long continued and indefinite duration, (ii)substantially impedes his ability to live independently, and(iii)is of such nature that such disability could be improved by more suitable housing conditions. C. Eligible Items Items determined eligible will be based upon Federal Statute 40.4 (a),which states: "Residential structures...shall be designed, constructed, or altered to insure that physically handicapped persons will have ready access to, and use of, such structures. Consequently, the Barrier Removal program will place greater emphasis upon the structural renovations allowing disabled persons to physically access and utilize Revised April 2012 their residence more easily, and lesser emphasis on purchase of equipment, unless the equipment removes a barrier. Eligible items are divided into three categories based on priority. Medium and low priority items that are eligible under the program should be included only after high priority needs have been met, or if they accompany high priority items. The items listed below are not all inclusive, but are a listing of examples. Items to be funded through this program should be determined on a case-by-case basis and should always address the most urgent accessibility needs. High Priority Items 1. Entrances • Platform Life • Stair Glide • Outside ramps • Doorways • Handrails on ramps • • Door landings • Hall widening • Mini-elevators • Thresholds • Sidewalks leading to home entry • Steps (Precast steps are eligible if the existing steps are determined too steep or wide for accessibility. Handrails should be installed only if the steps are in reasonably good condition, but the individual needs support when using steps.) 2. Door and Windows • Unobstructed openings • Lever-like handles • Openings and ventilation mechanisms easy to operate • Automatic door-opening devices 3. Bathrooms • Wheelchair accessibility • Toilet grab bars • Toilet seat at correct height • Bathroom doors widened • Lavatory mounted properly • Tub handrails and seats Revised April 2012 • Anti-slip surfaces for tub and showers • Tub lift • shower frontage • shower handrails and seat Bedroom • Wheelchair accessibility • Trapeze Bar Medium Priority Items • Doorknobs and handles • Non-slip floors in rooms other than bathrooms • Light switches -master • Switches at appropriate level • Accessible window panes • Mirror/medicine cabinet at appropriate level • Mattress level adjusted • Kitchen sink height • Kitchen turning space • Kitchen storage space • Refrigerator accessible • Signal systems (e.g. flashing signals and multi-purpose signaler systems)that are wired into structure. Low Priority Items • Kickplates on doors • Carpeting • • Soap dishes • Towel Racks • Bathroom door locks • Closet doors • Dressing table • Storage space • Kitchen sit-down center • Toe space under kitchen cabinets • Kitchen faucets and controls • Reaching faucets and controls • Reaching devices D. Administration of Services The League of Human Dignity will coordinate application processing for assistance and/or financial aid with the following agencies: Revised April 2012 City of Omaha Planning Department, Housing and Community Development Division Nebraska Department of Social Services Paralyzed Veterans of America, Great Plains Chapter Vocational Rehabilitations Services Nebraska Commission for the Hearing Impaired (Omaha Office) Nebraska Services for the Visually Impaired (Omaha District) Eastern Nebraska Office on Aging Nebraska Assistive Technology Project Veterans Administration E. Procedures The League of Human Dignity(LHD) will make the initial contact with the applicant to identify his/her needs, determine financial eligibility and prepare a work write-up. If the LHD desires assistance in making a decision of eligibility or determination of the extent of modifications needed, or if the LHD needs assistance concerning building codes and design, contact will be made with the Planning Department, Housing and Community Development(HCD)Division. If the LHD determines that the applicant's needs exceed the Barrier Removal program,LHD will contact the Planning Department, Housing and Community Development Division to determine if referral to one of the City's Rehabilitation programs is appropriate. If the applicant is eligible to participate in a Rehabilitation Program, the LHD will assist the HCD Division to determine barrier removal modification needs prior to the work write up. The following steps shall be followed for processing: 1. Outreach-preliminary data gathering a. Applicant Interview b. Needs identified and prioritized c. Eligibility determined (include verification of income and checking and savings account deposits; and verification of ownership and tax status with a title certification for applications that involve modification of real estate.) 2. Outreach a. Notification concerning program participation 3. Work Write-up-Prepare Final a. Research equipment and design as needed Revised April 2012 b. Consult with City codes or Rehabilitation Division c. In rental units, contact landlord to get permission to do modifications. 4. League of Human Dignity employees may be used for minor rehabilitation tasks on barrier removal projects. 5. Bids: For projects estimated to cost$1,000 or less, obtain verbal bids from two or more contractors on a rotating list of approved contractors. For projects estimated to cost more than $1,000: a. Prepare final bid specifications and bid invitations b. Mail bid invitations c. Bid opening,tabulation and award contract d. Obtain grantee and contractor signatures on contracts. The League will obtain signatures from all owners of record on contracts which involve modifications to real estate. e. Authorize contractor to begin job. 6. Job Implementation a. Monitor work of contractor • b. Certification of payment c. Final Inspection • d. Final payment to contractor F. Eligibility Requirements The LHD will be responsible for determining the eligibility of applicants seeking financial assistance. Financial assistance will be based on income qualifications and owner/renter status. 1. If an applicant is a renter,he/she must follow procedures outlined in these guidelines under Section H. Conditions for Landlord. 2. A landlord/owner may be an applicant, in which case the annual household gross income eligibility requirement shall be applied to tenants of the unit after barrier modifications are made. No financial assistance will be provided to a landlord/owner unless it is known that potential disabled tenants are in need of housing which has undergone barrier removal. 3. Owner/occupant households meeting the low/moderate income guidelines and needing accessibility improvements are eligible to receive a barrier removal grant. Revised April 2012 G. Definition of Annual Household Income Annual Income. Annual Income is defined as the anticipated total income from all sources received by an individual or the family head and spouse (even if temporarily absent) and by each additional member of the family over the age of 18 years (including full-time students)residing in the same household, including all net income derived from assets, for the 12-month period following the effective date of initial determination of eligibility as listed under"Income Inclusions"exclusive of income that is temporary, nonrecurring or sporadic as listed in item (1) under"Income Exclusions" and exclusive of certain other types of income as listed in items (2)-(4) under"Income Exclusions". Income Inclusions Annual Income shall include: 1. The full amount, before any payroll deductions, of wages and salaries, overtime pay, commissions, fees, tips and bonuses, and other compensation for personal services; 2. The net income from operation of a business or profession (for this purpose, expenditures for business expansion or amortization of capital indebtedness and an allowance for depreciation of capital assets hall not be deducted to determine the net income from a business); 3. Interest, dividends and other net income of any kind from real or personal property savings, stocks, bonds,trust funds, and other forms of capital investment (for this purpose, expenditures for amortization of capital indebtedness and an allowance for depreciation of capital assets shall not be deducted to determine the net income from real or personal property); 4. The full amount of periodic payments received from social secutiry, annuities,insurance policies, retirement funds,pensions, disability or death benefits and other similar types of periodic receipts, including a lump-sum payment for the delayed start of periodic payment. 5. Payments in lieu of earnings, such as unemployment and disability compensation, worker's compensation and severance pay(but see Item 1 (c)under"Income Exclusions"). 6. Public Assistance. If the public assistance payment includes an amount specifically designed for shelter and utilities,that is subject to adjustment by the public assistance agency in accordance with the actual cost of shelter and utilities,the amount of public assistance income to be included as income shall consist of: Revised April 2012 a. The amount of the allowance or grant exclusive of the amount specifically designated for shelter or utilities, plus b. The maximum amount that the public assistance agency could in fact allow the family for shelter and utilities. If the family's public assistance is ratably reduced from the standard need by applying a percentage,the amount calculated under this paragraph shall be the amount resulting from one application of the percentage. 7. Periodic and determinable allowances, such as alimony and child support payments, and regular contributions or gifts received from persons not residing in the dwelling. 8. All regular pay, special pay and allowances of member of the armed forces (whether or not living in the dwelling)who is head of the family, spouse, or other person whose dependents are residing in the unit(but see Item 1(e)under"Income Exclusions"); and, 9. Any earned income tax credit to the extent it exceeds income tax liability. 10. Wages, salaries,tips, commissions, etc; • Self-Employment income from owned non-farm business, including proprietorships and partnerships; • Farm self employment income; • Interest, dividends, net rental income, or income from estates or trusts • Social Security or railroad retirement; • Supplemental Security Income, Aid to Families with Dependent Children, or other public assistance or public welfare programs; • Retirement, survivor or disability pensions; • Any other sources of income received regularly including Veterans' (VA)payments, unemployment compensation,child support and alimony; and, a. amounts in savings certificates, money market funds and other investment accounts, b. stocks, bonds savings certificates,money 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, Revised April 2012 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 termination employment. g. assets which, although owned by more than one person, allow unrestricted access by applicant. h. lump sum receipts such as inheritances, capital gains, lottery winnings, insurance settlements and other claims. i. personal property held as n 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. 11. Actual income from assets if total assets are$5,000.00 or less. 12. If assets are more than$5,000.00 the greater of(a) actual income from assets, or(b)total assets times passbook rate. Income Exclusions: Annual Income shall not include: 1. Temporary, non-recurring or sporadic income as the following: a. Casual, sporadic or irregular gifts; b. Amounts that are specifically for, or in reimbursement of, the cost of medical expenses; c. Lump-sum additions to family assets, such as inheritances, insurance payments (including payments under health and accident insurance and worker's compensation), capital gains and settlement for personal or property losses (but see Item 5 under"Income Inclusions"); d. Amounts of educational scholarships paid directly to the student or to t the Educational institution, and amounts paid by the Government to a veteran for use in meeting the costs of tuition, fees, books and equipment. Any amounts of such scholarships, or payments to veterans, not used for the above purpose that are available for subsistence are to be included in income; and, e. The hazardous duty pay to a family member in the Armed Forces away from home and exposed to hostile fire. Revised April 2012 2. Income from employment of children(including foster children) under the age of 18 years. 3. Payment received for the care of foster children. 4. Amount specifically excluded by any other Federal statute from consideration as income for the purpose of determining eligibility. The following are examples of income subject to such exclusion: a. Relocation payments made under Title II of the Uniform Relocation Assistance and Real Property Acquisition Act of 1970 (42 U.S.C. 4621- 4638); b. The value of the allotment provided to an eligible to an eligible household for coupons under the Food Stamp Act of 1977 (U.S.C.2011- 2029); c. Payments to volunteers under the Domestic Volunteer Service Act of 1973 (42 U.S.C. 4951-4993); and d. Payments or allowances made under the Department of Health and Human Services' Low Income Home Energy Assistance Program (42 U.S.C. 8621-8629). H. Conditions for Landlords The landlord must agree to make all accessibility modifications deemed.necessary . by the LHD for which funding is secured. Furthermore, the landlord must agree to provide the accessible living unit for a renter with a physical disability for a period of not less than three years. Evidence of making the unit available to a renter with a physical disability includes: advertising the unit as an accessible unit, and notifying the League of Human Dignity of the availability of the unit. The landlord must have a rental unit that can be modified to provide an accessible living unit for an individual with a physical disability as required by the League of Human Dignity. The landlord must agree that if, for any reason, he/she decides not to continue to rent the improved unit to a person with a physical disability in need of an accessible living unit, he./she will rebate a portion of the initial grant at a rate of 100 percent of the first year, 50 percent of the second year, 25 percent of the third year, and thereafter, zero percent (see attachment"B"). Revised April 2012 If the structure has undergone barrier removal modification as a part of the Barrier Removal Program, the League of Human Dignity will determine the amount of Community Development Block Grant Funds expended for barrier removal modifications. If the landlord does not continue to rent the improved unit to a person with a physical disability, the Community Development Block Grant portion expended on barrier removal will be paid back at a rate os 100 percent the first year, 50 percent the second year, 25 percent the third year, and zero percent thereafter. Conditions for Owners The owner(s)must agree to make all accessibility modifications deemed necessary by the LHD for which funding is secured. Furthermore the owner(s)must agree to provide the accessible living unit to a household member with a physical disability for a period of not less than three years. • The owners)must have a living unit that can be modified to provide an accessible living unit for a household member with a physical'disability as required by the League of Human Dignity. The owner(s)must agree that if he/she sells or moves from the property which was modified, the owner(s)will rebate a portion of the initial grant at a rate of 100 percent of the first year and, thereafter, zero percent. These conditions apply to any changes in ownership of the improved unit. If the structure has undergone barrier removal modification as part of the Barrier Removal Program, the League of Human Dignity will determine the amount of Community Development Block Grant funds expended or barrier removal modifications. If the homeowner sells or moves from the modified property/home, the owner(s) will rebate the Community Development Block Grant portion at a rate of 100 percent the first year, 50 percent the second year, 25 percent the third year, and zero percent thereafter. These conditions apply to any changes in ownership of the improved unit. J. Restoration to Original Condition The landlord must agree to hold neither the City of Omaha nor the League of Human Dignity responsible for any costs associated with restoring the unit to its original condition if the tenant moves. If the landlord so chooses,the landlord and tenant must negotiate any agreement to cover costs of restoration. Revised April 2012 K. Displacement of Tenants In no event shall any person or family be displaced, either permanently or temporarily, from the property undergoing the barrier removal project. L. Non-discrimination on the Basis of Handicapped Status The League of Human Dignity does not discriminate on the basis of disability, race, color, sex,religion, national origin, ancestry, age, familial status,marital status, veteran status, sexual orientation or gender identity in the admission or access to services, or treatment of employment in its federally assisted programs or activities. M. Co-funding for BRIC Projects The League of Human Dignity will make all reasonable efforts to assist consumers to obtain co-funding for eligible projects when they exceed the allowable maximum of CDBG/BRIC grant funds. In some situations other funds, up to 100 %of the project cost, may be paid from resources other than CDBG funds. In these cases, if the design/specifications for the project have been accomplished through the use of CDBG funds or if any preliminary costs such as snryey costs have been paid through the use of CDBG funds, such projects will be counted as a completed Barrier Removal project. Revised April 2012 League of Human Dignity Inc Omaha Center for Independent Living Project Budget-2017 Omaha Omaha Enrich. ACL Income TOTAL CDBG CDBG Fndtn Grant Foundation grants for barrier removal projects 23,000 23,000 �/ City of Omaha-administration funds 5,000 5,000 ti City of Omaha-grants for barrier removal projects 45,000 45,000 �� ‘/t US Dept of Health and Human Service ACL grant 75,517 75,517 Total Income 148,517 45,000 5,000 23,000 75,517 5\1 el "V Expenses Omaha Omaha Enrich. ACL Salaries CDBG CDBG Fndtn Grant Housing&Design Specialist-.65 FTE 24,505 2,250 22,255 BRP Advisor -.65 FTE 19,175 2,250 16,925 Supervisor-.1 FTE 7,050 7,050 Payroll taxes 3,881 3,881 Benefits 11,313 11,313 Office space 4,014 4,014 Office supplies 600 600 Telephone 480 480 Postage 500 500 Printing&copying 360 360 Mileage 1,320 1,320 Indirect Costs(mgmt,accounting,HR,etc) 7,320 500 6,820 Total Operating Expenses 80,517 0 5,000 0 75,517 Barrier Removal Grants • 68,000 45,000 0 23,000 0 Total Expenses 148,517 45,000 5,000 23,000 75,517 Federal Indirect Cost Rate is 10%,applicable to all funding sources. it:I tteJVffiN,.wMf INFeNtMAr'MN GPO . 1 i 1,I. i i. i PARTS 200-214 [RESERVED] 215.36 Intangible property. 215.37 Property trust relationship. PART 215-UNIFORM ADMINISTRA- PROCUREMENT STANDARDS 1' TIVE REQUIREMENTS FOR GRANTS. 215.40 Purpose of procurement standards: AND AGREEMENTS WITH INSTITU; 215:41 Recipient responsibilities. 215.42 Codes of,conduct. } TIONS OF HIGHER EDUCAXON, 215.43 Competition; l HOSPITALS, AND OTHER NON- t. 215.94 Procurement procedures. R: PROFIT ORGANIZATIONS (OMB 215.45 Cost and pride analysis. CIRCULAR A-110) 215.46 Procurement records. 215.47 Contract administration. ` Sec. 215:4.8 Contract'.provisions. 1 215.0 About this part. REPORTS AND RECORDS Subpart A-General 215.50 Purpose of reports and records. 215.51 Monitoring and reporting program 215i1 Purpose. performance. 215.2 Definitions. 215.52. Financial reporting. 215.3 Effect on other issuances, 215.53 Retention and access requirements r,•, 215.4 Deviations, for records. e 215.5 Subs: t•wards, TERMINATION':AND ENFORCEMENT' Subpart B-Pre-Award Requirements. 215.60 Purpose of termination and enforce • - ment, I 215.10 Purpose. 215.61 Termination. 215.11 Pre-award policies. 215.62 '.Enforcement.. 215.12 Forms for applying for Federal assist- f anee-. Subpart D-After-the-Award Requirements r' 215.13 Debarment and suspension. 215.14 Special award conditions. 215.70 Purpose. F 215;15 Metric system of measurement. 215.71 Closeout procedures. I, 215.16 Resource Conservation and Recovery 215.72 Subsequent adjustments and; w;en- 1 Act timing responsibilities. 1, 215.17 Certifications and representations. 215.73 Collection of amounts due, k. Subpart C-Post-Award Requirements APPENDIX A TO PART 215-CONTRACT PROVI- SIONS FINANQIAL-AND PROGRAM MANAGEMENT. . AUTHORITY: 31 U.S.C. 503; 31.U.S.C. 1111; 41 ; 'F 215.20 Purpose of financial and program U.S.C.405;Reorganization.Plan No.2,of.1920; E.O. 11541, 35 ER 10737, 3"CFR, 1966-1970, p. management. 939. t: 215.21 Standards for financial management i systems. SOURCE: 69 FR 26281, May 11, 2004, Maness 215.22 Payment. otherwise noted. 4 215.23 Cost sharing or snatching,. t. 215.24 Program income. 4215.0 About this part. `. 215.25 Revision of budget mid prof lanl plans. (a) Purpose. This part contains OMB 215.26 Non-Federal audits. guidance to Federal agencies on the ad- 215.27 Allowable costs. ministration of grants to and agree- 215.28 Period of availability of finds. ments with institutions of higher edu- I{ 21529 Conditional exemptions. cation, hospitals, and other non-profit l' PROPERTY STANDARDS organizations. The guidance sets forth ,. standards for obtaining consistency i' 215.30 Purpose of property standards, and uniformity in the agencies' admin- 215.31 Insurance coverage. istration of those grants and agree- j 215.92 Real:property.. menu: 215.33 Federally-owned and exempt. ,prop- I; erty. (b) Applicability. (1) Except as pro- 215.34 Equipment. vided herein, the standards set forth in 215.35 Supplies and other expendable prop- this part are applicable to all Federal erty. agencies. 'If any statute specifically TT I. I I t, §215.1 2 CfR Ch. It(1-1-12 Edition) prescribes policies or specific require- where adequate justification is pre- merits that differ from the standards sented. provided in this part, the provisions of (5) Conducting broad oversight of , the statute shall govern. goveruxnent-wide compliance with the (2) The provisions of subparts A guidance in this part: through D of this part shall be applied (d) Federal agency responsibilities. The by Federal agencies to recipients. Re- head of each Federal agency that cipients shall apply the provisions of awards and administers_ grants and those subparts to subrecipients per- agreements subject to the guidance in w rants this part is responsible ic I- forming substantive atk under p subparts A through f this part bn and agreements that are passed �) Implementing the guidance in through or awarded by the primary re-, oipient, if such subrecipients are'orga- adopting the language in those sub- nizations described in paragraph (a) ot parts unless different provisions are..re- this section. quired by Federal statute or are ap- (3)This part does not apply to grants, proved by OMB: ', contracts, or other agreements be- (2) Ensuring that the agency's corn- tween the Federal Government and ponents and s1i_bcomponents comply [i units of State or. local governments with the agency's implementation of covered by OMB Circular A-102, the guidance in subparts A through D l "Grants and Cooperative Agreements of this part. with State and Local Governments"' (3) Requesting approval from OMB ' and the Federal agencies' grants man- for deviations from the guidance in agement common rule (see §215.5) subparts A.through D of this part in } which standardize the administrative situations where the guidance requires I, requirements Federal agencies impose that approval. °' on State and local grantees. In addi- (4) Performing other functions speci- tion, subawards and contracts to.State fled in this part. . or local governments are not covered t suance. 1 by this part.However, this part applies (e)eRelationship thiso part eviousl to subawards made by State'and local was slued as M ular previously 1: was issued as OMB Circular A-110. Sub- governments to organizations covered parts A through D of this part contain by this part. the guidance that was in the attach- (4) Federal agencies may apply the meet to the OMB circular. Appendix A provisions of subparts A through D of to this part contains the guidance that � this part to commercial organizations, was in the appendix to the attachment. ', foreign governments, organizations /, under the jurisdiction of foreign gov. (f)information,Contact. Further infer- under. and international organza- matron concerning this part may be ob- ernments, tallied by contacting the Office of Fed- • eral Financial Management, Office of t (c) OMB responsibilities. ;OPlll3 fti:°ie- ,. sponsible for: Management, and Budget, Washington, (1)Issuing and maintaining the guid- DC 20503;telephone(202)395-3993. ante in this part. (g) Termination Review Date.This,part i. (2) Interpreting the policy require- will have a policy review three years. ments in this part and providing assist- from the date of issuance. ance to ensure effective and efficient Subpart A--General (- implementation. p (3) Reviewing Federal agency regula- t tions implementing the guidance in §215.1 Purpose. this part, as required by Executive This part establishes uniform admin- f Order 12866. istrative requirements for Federal (4) Granting any deviations to Fed- grants and agreements awarded to in- eral agencies from the guidance in this stitutions of higher education, hos- part, as provided in §215.4. Exceptions pitals, and other non-profit organiza- will only be made in particular cases tions. Federal awarding agencies,rshall not impose additional or inconsistent L See 5 CFR.1310.9 for availability of OMB requirements, except as provided in circulars. §§2154, and 215.14 or unless specifically i i r . ' I. • OMB Circulars and Guidance §215.2 ' required by Federal statute or execu- money; other assistance in the form of tive order. Non-profit organizations loans, loan guarantees, interest sub- that implement Federal programs for sidles, or insurance; direct payments of the States are also subject to State re- any kind to individuals; and, contracts quirements. which are required to be entered intcl §215.2 Definitions. and administered, under procurement laws and regulations. (a) Accrued expenditures means the (f) Cash contributions means the re- charges incurred by the recipient dur- cipient's cash outlay, including the ing a given period requiring the provi- outlay of:money contributed.to the.re- sion of funds for: cipient by third parties. (1) Goods and other tangible property (g) Closeout means the process by received; which a Federal awarding agency de- (2) Services performed by employees, termines that all applicable adminis- contractors, subrocipients, and other trative actions and all required work of payees; and, the award have been completed by the (d Other amounts becoming owed recipient and Federal awarding agency. under programs for which no current services or performance is required. (h). Contract means a procurement (b) Accrued income means the sum of: contract under an award or subaward, (1) Earnings during a given period and a procurement subcontract under a from: recipient's or subrecipient's contract. (i) Services performed by the recipi- (i) Cost sharing or matching means ent,and that portion of project or program (ii) Goods and other tangible prop- costs not borne by the Federal Govern- erty delivered to purchasers,and ment. (2) Amounts becoming owed to the (j) Date of completion means the date recipient for which no current services on which all work under an award is j. or performance is required by the re- completed or the date on the award cipient. document, or any supplement or (c)Acquisition cost of equipment means amendment thereto, on which Federal the net invoice price of the equipment, sponsorship ends. including the cost of modifications, at- (k) Disallowed costs means those t tachments, accessories, or auxiliary charges to an award that the Federal apparatus necessary to make the prop- awarding agency determines to be un- erty usable for.the purpose for which it allowable, in a000rdanoe with the ap- was acquired. Qther charges, such as placable Federal cost principles .or the cost of installation, transportation, other terms and conditions contained taxes, duty or protective in-transit in-, in the award. surance, shall be included or excluded non- from the unit acquisition cost in ac- (1) dabEqule personalet means,property tangible i nc icordance with the recipient's regular expendable property including accounting practices. exempt property charged directly to (d) Advance means a payment made the award having a useful life of more by Treasury check or other appropriate than one year and an acquisition cost payment mechanism to a recipient ,of $5,000 or more per unit. However, upon its request either before outlays. consistent with recipient policy, lower are made by the recipient or through limits may be established,. . the use of predetermined payment (m) Excess property means property schedules. • under the control of any Federal (e) Award means financial assistance awarding agency that, as determined that provides support or stimulation to by the head thereof, is no longer re- accomplish a public purpose. Awards quired for its needs or the discharge of include grants and other agreements in its responsibilities. the form of money or property in lieu (n) Exempt property means tangible �. of money, by the Federal Government personal property acquired in whole or to an eligible recipient. The term does' in part with Federal funds, where the not include: technical assistance, Federal awarding agency has statutory which provides services instead of authority to vest title in the recipient 79 • 4 • t 1 §215.2 2 CFR Ch. t! (1-1-12 Edition) without further obligation to the Fed- bursements for direct charges for goods eral Government. An example of ex- and services,the amount of indirect ex- empt property authority is contained pense incurred, the value of in-kind in the Federal Grant and Cooperative contributions applied, and the net in- Agreement Act (31 U.S.C: 6306), for crease (or decrease) in the amounts • property acquired under an award to owed by the recipient for goods and conduct basic or applied research by a, other property received, for services non-profit institution of higher edu- performed by employees, contractors, cation or non-profit organization subrecipients and other payees and whose principal purpose is conducting other amounts becoming owed under scientific research. programs for which uo current services (o) Federal awarding agency means or performance are required. the Federal agency that provides an (v) Personal property means property award,to the recipient. of any kind except real property. It i. (p)Federal funds authorized means the may be tangible,having physical exist- total amount of Federal funds obli- ence, or intangible, having no:physical gated by the Federal Government for existence, such as copyrights, patents, use by the recipient. This amount may or securities. include any authorized carryover of un- (w) Prior approval means written ap- obligated funds from prior funding pe- proval by an authorized official. evi= riods when permitted by agency regula- denting prior consent. 1 tions or agency implementing instruc- (x) Program income means gross in- tions. come earned by the recipient that is di- (q) Federal share of real property, rectly generated by a supported activ- equipment, or supplies means that per- ity or earned as a result of the award centage of the property's acquisition (see exclusions in §215.24(e) and. (h)). costs and any improvement expendi- Program income includes, but is not tures paid with Federal funds. limited to, income from fees for serv- e. (r)Funding period means the period of ices performed,the use or rental of real time when Federal funding is available or personal property acquired under for obligation by the recipient. federally-funded projects, the sale of (s) Intangible property and debt instru- commodities or items fabricated under ments means, but is not limited to, an award, license fees and royalties on 1 trademarks, copyrights, patents and patents and copyrights, and;interest on patent applications and such property loans made with award funds. Interest. as loans, notes and other debt instru- earned on advances of Federal funds is ments, lease agreements, stock and not program income. Except as other- other instruments of property owner- wise provided in Federal awarding ship,whether considered tangible or in- agency regulations or the terms and tangible. conditions of the award, program in- (t) Obligations means the amounts of come does not include the receipt of orders placed, contracts and grants principal on loans,rebates, credits, dis- awarded, services received and similar counts, etc., or interest earned on any . transactions during a given period that of them. require payment by the recipient dur- (y) Project costs means all allowable ing the same or a future period. costs, as set forth in the applicable (u) Outlays or expenditures means Federal cost principles, incurred by a charges made to the project or pro- recipient and the value of the contribu- gram. They may be reported on a cash tions made by third parties in accom- or accrual basis. For reports prepared plashing the objectives of the award on a cash basis, outlays are the sum of during the project period. cash disbursements for direct charges (z)Project period means the period es- for goods and services, the amount of tablished in the award document dur- indirect expense charged, the value of ing which Federal sponsorship begins third party in-kind contributions ap- and ends. • plied and the amount of cash advances (aa) Property means, unless otherwise •• and payments made to subrecipients. stated, real property, equipment, in- For reports prepared on an accrual tangible property and debt instru- � . basis, outlays are the sum of cash dis- ments. 80 f*- f . OMB Circulars and Guidance §215.2 (bb)Real property means land,includ- money, or property in lieu of money, ing land improvements, structures and made under an award by a recipient to appurtenances thereto, but excludes an eligible subrecipient or by a sub- movable machinery and equipment. recipient to a lower tier subrecipient. (cc) Recipient means an organization The term includes financial assistance receiving financial assistance directly when provided by any legal agreement, from Federal awarding agencies to even if the agreement is called a.con- carry out a project or program. The tract, but does not include procure- term includes public and private insti= ment of goods and services nor._dpes it tutions of higher education,public and include any form of assistance which is. Private hospitals, and other quasi-pub- excluded from the definition of lic and private non-profit organizations "award"in§215.2(e). such as,but not limited to, community (gg)Subrecipient means the legal enti- action agencies, research institutes, ty to which a subaward. is made and educational associations, and health which is accountable to the recipient centers. The term may include coin- for the use of the funds provided. The mercial organizations, foreign or inter- term may include foreign or inter- national organizations (such as agen- national organizations (such as agen- cies of the United Nations) which are cies of the United.Nations) at the dis- recipients, subrecipients, or contrac- cretion of the Federal awarding agen- tors or subcontractors of recipients or cy« subrecipients at the discretion of the (hh)Supplies means all personal prop- Federal awarding agency. The term erty excluding equipment, intangible does not include government-owned property, and debt instruments as de- contractor-operated facilities or re- fined in this section, and inventions of search centers providing continued a contractor Conceived or first actually support for mission-oriented, large- reduced to practice in the performance scale programs that are government- of work under a funding agreement owned or controlled; or are designated ("subject inventions"), as defined in 37 as federally-funded research.and devel- CF.R part 401, "Rights to Inventions opment centers. Made by Nonprofit Organizations and (dd) Research and development means Small Business Firms Under Govern- all research activities, both basic and meat Grants, Contracts, and Coopera- applied, and all development activities tive Agreements." r. that are supported at universities, col- (ii) Suspension means an action by:a leges, and other non-profit institu- Federal awarding agency that tempo- tions. "Research" is defined as a sys- racily withdraws Federal sponsorship tematio study directed toward fuller under an award, pending corrective ac- scientific knowledge or understanding tion by the recipient or pending a deci- of the subject studied. "Development" sion to terminate the award by the is the systematic use of knowledge and Federal awarding agency. Suspension understanding gained from research di- of an award is a separate action from rected toward the production of useful suspension under Federal agency regu- • materials, devices, systems, or meth- lations implementing F.O. 12549 (51 FR ods, including design and development 6370, 3 CFR,1986 Comp., p. 189)and E.O. of prototypes and processes. The term 12689(54 FR 34131, 3 CFR, 1989 Comp., p. research also includes activities in- 235), "Debarment and Suspension." volving the training of individuals in (jj) Termination means .the cancella- research techniques where such activi- tion of Federal sponsorship,in whole or ties utilize the same facilities as other in part, under an agreement at any research and development activities time prior to the date of completion. and where such activities are not in- (kk) Third party in-kind contributions eluded in the instruction function. means the value of non-cash contribu- I. •(ee) Small awards means a grant or tions provided by non-Federal third cooperative agreement not exceeding parties. Third party in-kind contribu- the small purchase threshold fixed at tions may be in the form of real prop- 41 U.S.C.403(11)(currently$25,000). erty, equipment, supplies and other ex- (ff).Subaward means an award of fi- pendable property,. and the value of nancial assistance in the form of goods and services directly benefiting 81 • 'i. §215.3 2 CFR Ch. II (1-1-12 Edition) and specifically identifiable to the utory. Exceptions on a case-by-case project or program. basis may also be made by Federal (11) Unliquidated obligations, for finan- awarding agencies. cial reports prepared on..a cash basis, means the amount of obligations in- §215.5 Subawards.. curved by the recipient that have not Unless sections of this part specifi- been paid. For reports prepared on an tally exclude subrecipients from cov- accrued expenditure basis, they rep- erage, the provisions of this part shall resent the amount of obligations in- be applied to .subrecipients perforining curved by the recipient for which an work under awards if such subreoipi- outlay has not been recorded. ents are .institutions of higher edu- (mm) Unobligated balance means the cation,hospitals or other non-profit or- portion of the funds authorized by the ganizations: State and local govern • - `ederal awarding agency that has not ment subrecipients are subject to the been obligated by the recipient and is provisions of regulations implementing determined by deducting the eumu= the grants i lanagement common rule, lative obligations from the cumulative "Uniform Administrative Require, funds authorized. ments for Grants and Cooperative (nn) Unrecovered indirect cost means Agreements to State and Local Gov- the difference between the amount ernments,"- published at 7 CFR parts awarded and the amount which could 3015 and 3016, 10 OFR part 600, 13 CFR have been awarded under the recipi- part 143, 15 CFR part 24, 20 CFR part ent's approved negotiated indirect cost 437,22 CFR part 135,24 CFR parts 44,85, rate. 111, 511, 570, 571, 575, 590, 850, 882, 905, (oo) Working capital advance means a 941, 968, 970, and 990,.28 CFR part 66, 29. procedure whereby funds are advanced CFR parts 97 and 1470, 32 CFR part 278, to the recipient to cover its estimated 34 CFR parts 74 and 80, 36 CFR part disbursement needs for a given initial 1207,38 CFR part 43, 40 CFR parts 30,31, period. and 33, 43 CFR part.12, 44 CFR part 13, • §215.3 Effect on other issuances. 45 CFR parts 74, 92, 602, 1157, 1174, 1183, For awards subject to this part, all 1234,and 2015,and 49 CFR part 18.. administrative requirements of codi .[69 FR 26281, May 11, 2004, as amended at.70 fled program regulations, program FR 51880,Aug.31,,20051 manuals, handbooks and other non- j regulatory materials which are bacon- Subpart 13---Pre=Award sistent with the requirements of this Requirements. part shall be superseded, except to the extent they are required by statute, or §216.10 Purpose. authorized in accordance with the devi- Sections 215.11 through 215.17 pre- ations provision in§215.4. scribe forms and instructions and other §215.4 Deviations. pre-award ;natters to be used in apply- ing for Federal awards. The Office of Management and Budg- et (OMB) may grant exceptions for p classes of grants or recipients subject (a) Use of Grants and Cooperative to the requirements of this part when Agreements, and Contracts. In each in- exceptions are not prohibited by stat- stance, the Federal awarding agency ute. However, in the interest of max- shall decide on the appropriate award imum uniformity, exceptions from the instrument (i.e., grant, cooperative requirements of this part shall be per- agreement, or contract). The Federal mitted only in unusual circumstances. Grant and Cooperative Agreement Act Federal awarding agencies may apply (31 U.S.C. 6301-08) governs the use of more restrictive requirements to a. grants, cooperative agreements and class of recipients when approved by contracts. A grant or cooperative OMB. Federal awarding agencies may agreement shall be used only when the apply less restrictive requirements principal purpose of a transaction is_to when awarding small awards, except accomplish a public purpose of support for those requirements which are stat- or stimulation authorized by Federal 82. • • • OMB Circulars and Guidance 0215.15 statute.. The statutory criterion for agency regulations implementing E.O.s choosing between grants and coopera- 12549 and 12689, "Debarment and Sus- tive agreements is that for the latter, .pension." Under those regulations, cer- "substantial involvement is expected tarn parties who are debarred, sus- between the executive agency and the pended or otherwise excluded may not • State, local government, or other re- be participants or principals in Federal .< cipient when carrying out the activity assistance awards and subawards, and contemplated in the agreement." Con- in certain contracts under those - tracts shall be used when the principal awards and.subawards. purpose is acquisition of property or [70 FRb1879,Aug.31,2005] services for the direct benefit or use of the Federal Government. §215.14 Special,award conditions. (b) Public Notice and Priority Set- If an applicant or.recipient:has.a his- ting. Federal awarding agencies shall tory of:poor performance,.is not finan- notify the public of its intended fund- daily stable, has a management sys- ing priorities for discretionary grant tern that does not meet the standards programs, unless funding.priorities are prescribed in this part, has not con- established by Federal statute. formed to the'terms and conditions of §215.12 Forms for applying 'frir Fec3:= a previous award, or is not otherwise eral assistance. responsible, Federal awarding agencies (a) Federal awarding•agencies shall may impose additional requirements as with the applicable report needed,provided that such applicant or complyn • clearance requirements of 5 CFR part recipient nature of the d writing as to: q the additional require- 1320, "Controlling Paperwork Burdens ments, the reason why the additional on the Public," with regard to all requirements are being imposed, the forms used by the Federal awarding nature of the corrective action needed, • agency in place of or as a supplement the time allowed for completing the to the Standard Form 424 (SF-424) se- corrective actions, and the method for ries. requesting reconsideration of the addi- (b) Applicants shall use the SF-424 tional requirements imposed. Any ape- series or those forms and instructions cial conditions shall be promptly re- prescribed by the Federal awarding moved once the conditions that agency. prompted them have been corrected. (c) For Federal programs covered by E.O. 12372; "Intergovernmental Review §215.15 Metric system of measure of Federal Programs," (47 FR 30959, 3 meat. ' CFR, 1982 Comp., p. 197) the applicant The Metric Conversion Act, as shall complete the appropriate sections amended by the Omnibus Trade and of the SF-424 (Application for Federal Competitiveness Act (15 U.S.C. 205) de- Assistance) indicating whether the ap- dares that the metric system is the plieation was subject to review by the preferred measurement system for U.S. State Single Point of Contact (SPOC). trade and commerce. The Act requires The name and..address of the SPOC for each.Federal.agency to establish a date a particular State can be.obtained from or dates in consultation with the Sec- the.Federal awarding agency or the retary of Commerce, when the metric Catalog of Federal Domestic Assistance. system of measurement will be used.in • The SPOC shall advise the applicant the agency's procurements, grants, and whether the program for which applica- other business-related activities. Met- tion is made has been selected by that ric implementation may talge longer State for review. where the use of the system is initially (d)Federal awarding agencies that do impractical or likely to cause signifi- not use the SF-424 form should indi- cant inefficiencies in the accomplish- cate whether the application is subject ment of federally-funded activities. to review by the State under E.O.12372. Federal awarding agencies shall follow • §215.13 Debarment and suspension. the provisions of E.O. 12770, "Metric • p Usage in Federal Government Pro- Federal awarding agencies and re- grams" (56 FR 35801, 3 CFR, 1991 Comp., cipients shall comply with Federal p.343). 83 . ii I. } §215.16 2 CFR Ch. II(1-1-12 Edition) §215.16 Resource Conservation and data to performance data and develop , Recovery Act. unit cost information whenever prac- Under the Act, any State agency or tical. agency of a political subdivision of a (b)Recipients' financial management , State which is using appropriated Fed- systems shall provide for the following. • eral funds must comply with section (1) Accurate, current and complete 6002. Section 6002 requires that pref- disclosure of the financial results of 9 erence be given in procurement pro- each federally-sponsored project or ¢ grams to the purchase of specific prod- program in accordance with the report- 1 ucts containing recycled materials ing requirements set forth in§215.52. If identified in guidelines developed by a Federal awarding agency requires re- the Environmental Protection Agency porting on an accrual basis from a re- (EPA) (40 CFR parts 247-254). Accord- cipient that maintains .its records on ingly, State and local institutions of other than an accrual basis, the recipi- higher education, hospitals, and non- ent shall not be required to establish profit organizations that receive direct, an accrual accounting system. These i' Federal awards or other Federal funds recipients may develop such accrual shall give preference in.their procure- data for its reports.on the basis of an ment programs funded with Federal analysis of the documentation on hand. funds to the purchase of recycled prod- (2) Records that identify adequately uots pursuant to the EPA guidelines, the source and application of funds for I. federally-sponsored. activities. These i §215.17 Certifications and representa- records shall contain information per- I; Lions. taming to Federal awards, authoriza- Unless prohibited by statute or codi- tions, obligations, unobligated bal- fled regulation, each.Federal awarding ances, assets, outlays, income and in- agency is authorized and encouraged to terest. allow recipients to submit certifi- • (3) Effective control over and ac- cations and representations required countability for all funds, property and • by statute, executive order, or regula- other assets. Recipients shall ade ; tion on an,annual basis, if the recipi- quately safeguard all such assets and ents have ongoing and continuing rela- assure they are used solely for author- tionships with the.agency. Annual cer- ized purposes. ' tifications and representations shall be (4) Comparison of outlays with budg- !33 signed by responsible officials with the et amounts for each award. Whenever i authority to ensure recipients' compli- appropriate, financial information ance with the pertinent requirements. should be related to performance and I unit cost data. is Subpart C—Post Award (5) written procedures to minimize Requirements the time elapsing between the transfer of funds to the recipient from the U.S. FINANCIAL AND PROGRAM MANAGEMENT Treasury and the issuance or redemp- tion of checks, warrants or payments , §215.20 Purpose of financial and pro- by other means for program purposes gram management. by the recipient. To the extent that the Sections 215.21 through 215.28 pre- provisions of the Cash Management Im- scribe standards for financial manage- provement Act(CMIA) (Pub. L..101-453) ment systems, methods for making govern, payment methods of State 1 payments and rules for: satisfying cost agencies, instrumentalities, and fiscal 1 sharing and matching requirements, agents shall be consistent with CMIA accounting for program income,budget Treasury-State Agreements or the revision approvals, making audits, de- CMIA default procedures codified.at 31. termining allowability of cost, and es- CFR part 205, "Withdrawal of Cash i tablishing'fund availability. from the Treasury for Advances under Federal.Grant and Other Programs." §21521. Standards for .f financial man-. (6) Written procedures for deter- agement systems. mining the reasonableness, allocability , (a) Federal awarding agencies shall and allowability of costs in accordance require recipients to relate financial with the provisions of the applicable 84 • 1 • OMB Circulars and Guidance. §215.22 • Federal cost principles and the terms the actual disbursements by the recipi- and conditions of the award. ent organization for direct program or (7) Accounting records including:cost project costs arid the proportionate • accounting records that are supported share of any allowable indirect costs, by source documentation. (c) Whenever possible, advances shall (c)•Where the Federal Government be consolidated to cover anticipated guarantees or insures the repayment of cash needs for all awards made by the money borrowed by the recipient, the Federal awarding agency to the recipi- . Federal awarding agency, at its discre- ent. l tion, may require adequate bonding (1) Advance payment mechanisms in- and insurance if the bonding and insur- elude, but are not limited to, Treasury ance requirements of' the recipient are check and electronic funds transfer. not deemed'adequate to protect the in- (2)Advance payment.mechanisms are terest of the Federal Government. subject to 31 CFR part 205. • (d)The Federal awarding agency may (3) Recipients shall be authorized to require adequate fidelity bond coverage submit requests for advances and reim- where the recipient lacks sufficient bursements at least monthly when coverage to protect the Federal Gov- electronic.fund.-transfers are not used. ernment's interest. (d) Requests for Treasury check ad- (e) Where bonds are required,in the vance payment shall be submitted on situations described above, the bonds SF-270, "Request.for Advance or Reim- • shall be obtained.from.companies hold- bursement," or other forms as may be ;;. ing certificates of authority as accept- authorized by OMB..This form is not to f:• able.sureties, as prescribed in 31. CFR be used when Treasury check advance • part 223, "Surety Companies.Doing payments are made to the recipient • Business with the United States." automatically through the use of a pre- determined payment schedule or if pre- §215.22 eluded, by special Federal awarding (a) Payment methods shall minimize agency instructions for electronic �. the time elapsing between the transfer funds transfer. i; of funds from the United States Treas- (e) Reimbursement is the preferred ury and the issuance or redemption of method when the requirements in checks, warrants, or payment by other §215.12(b) cannot be met. Federal means by the 'recipients. Payment awarding agencies may also use this methods of State agencies or instru- method on any construction agree- mentalities shall be consistent with ment, or if the major portion of the Treasury-State CMIA agreements or construction project is accomplished default procedures codified at 31 CFR through private market financing or part:205. Federal loans, and the Federal assist • - (b) Recipients are to be paid in ad- ance constitutes a minor portion of the vance, provided they maintain or dem- project. onstrate the willingness to maintain: (1) When the reimbursement method (1)Written procedures that minimize is used, the Federal awarding agency the time elapsing between the transfer shall make payment within 30 days • of funds and disbursement by the re- after.receipt of the billing, unless the cipient,and billing is improper, (2) Financial management systems (2) Recipients shall be authorized to that meet the standards for fund con- submit request for reimbursement at trol and accountability as established least monthly when electronic funds in§215.21. Cash advances to a recipient transfers are not used. organization shall be limited to the (f) If a recipient cannot meet the cri- minimum amounts needed -and be teria for advance payments and the timed to be in accordance with the ac- Federal awarding agency has deter- tual, immediate cash requirements of mined that reimbursement is not fea- the recipient organization in carrying sible because the recipient lacks suffi- out the .purpose of the approved pro- cient working capital, the Federal gram or project. The timing and awarding agency may provide cash on a amount of cash advances shall be as working capital advance basis. Under close as is administratively feasible to this procedure, the Federal awarding 85 • i.: §21.5.22 2 CFR Ch• 11 (1-1-12 Edition) agency shall advance cash to the re- (2)Advances of Federal funds shall be eipient to cover its estimated disburse- deposited and maintained in insured ment needs for an initial period gen- accounts whenever possible, erally geared to the awardee's dis- (.j) Consistent with the national goal burring cycle. Thereafter, the Federal of a pandiug the opportunities for awarding agency shall reimburse the women-owned and minority-owned recipient for its actual cash disburse- business enterprises,recipients shall be ments. The working capital advance encouraged to use women-owned and method of payment shall not be used minority-owned banks(a bank which is for recipients unwilling or unable to owned at least 50 percent by women or provide timely advances to their sub- minority group members). recipient to meet the subrecipient's ac- (k) Recipients shall. maintain ad- tual cash disbursements. vances of Federal funds in interest (g) To the extent available, recipi- bearing accounts, unless paragraphs ents shall disburse funds available from (k)(1),(2) or(3)of this section apply. repayments,to and interest earned on a (1) The recipient receives less than revolving fund, program income, re- $120,000 in Federal awards per year. bates, refunds, contract settlements, (2) The best reasonably.available in- audit recoveries and.interest earned on terest bearing account would not be ex- such funds before requesting additional petted to earn interest in,excess of$250 cash payments. per year on Federal cash balances. (h)Unless otherwise required by stat- (3) The depository would require an • ute, Federal awarding agencies shall average or minimum balance. so high not withhold payments for proper that it would not be feasible within the charges made by recipients at any time expected Federal and non-Federal cash during the project period unless para- resources. graphs (h)(1) or (2) of this section (1) For those entities where CMIA. apply. and its implementing regulations.at 31 . (1) A recipient has failed to comply CFR part 205 do not apply, interest with the project objectives, the terms earned on Federal advances deposited and conditions of the award,or Federal in interest bearing accounts shall be reporting requirements. remitted annually to Department of (2) The recipient or subrecipient is Health and Human Services, Payment delinquent in a debt to the United Management System, Rockville, MD • States as defined in OMB Circular A- 20852. Interest amounts up to $250 per 129, "Managing Federal Credit Pro- year may be retained by the recipient 11 grams." Under such conditions, the for administrative expense. State uni- G Federal awarding agency may, upon versities and hospitals shall comply e reasonable notice, inform the recipient with CMIA, as it pertains to interest.If ,1 that payments shall not be made for an entity subject to CMIA.uses its own obligations incurred after a specified funds to pay pre-award costs for discre- date until the conditions are corrected tionary awards without prior written or the indebtedness to the Federal Gov- approval from the Federal awarding Y. ernment is liquidated. agency, it waives its right to recover ' (1) Standards governing the useof the interest under CMIA. !! banks and other institutions as deposi- (m)Except as noted elsewhere in this tories of funds advanced under awards part, only the following forms shall be are as-follows. authorized for the recipients in re- • (1) Except for situations described in questing advances and reimburse- paragraph.(i)(2) of this section, Federal ments. Federal agencies shall not re- awarding agencies shall not require quire more than an original and two separate depository accounts for funds copies of,these forms. provided to a recipient or establish any (1) SF-270, Request for Advance or eligibility requirements for deposi- Reimbursement. Each Federal award- tories for funds provided to a recipient. ing agency shall adopt the SF-270 as a However, recipients must be able to ac- standard form for all nonconstruction count for the receipt, obligation and programs when electronic funds trans- expenditure of funds. fer or predetermined advance methods -86 • OMB Circulars.and Guidance §215.23 are not used. Federal awarding agen- (1)The certified value of the remain- cies, however, have the option of using ing life of the property recorded in the this form for construction programs in recipient's accounting records at the • lieu of the SF-27I, "Outlay Report and time,of donation,. Request for Reimbursement for Con- (2) The current.fair market value. ;.. struction Programs." However, when there is sufficient jus- (2) SF-271, Outlay Report. and Re- tification, the Federal awarding agen- quest for Reimbursement for Construe- cy may approve the use of the current tion Programs. Each Federal awarding fair market value of the donated prop- 3 agency shall adopt the SF-271 as the erty, even if it exceeds the certified standard form to be used for requesting value at the time of donation to the reimbursement for construction pro- project. grams. However, a Federal awarding (d) Volunteer services furnished by agency may substitute the.: SF-270 professional' and technical personnel, when the Federal awarding agency de- consultants, and other skilled and un- termines that it provides adequate in- skilled labor may be counted as cost formation to meet Federal needs. sharing or matching if the service is an integral and necessary part of an ap- §215.23 Cost sharing or matching. proved project:or program. Rates for (a) AU contributions, including cash volunteer services shall be consistent and third party in-kind, shall be ac- with those paid for similar work in the {' cepted as part of the recipient's Bost recipient's organization. In those in- sharing or matching when such con- stances in which the required skills are tributions meet all of the following cri- not found in the recipient.organization, teria. rates shall be consistent with those (1)Are verifiable from the recipient's paid for similar work in the labor mar- records. ket in which the recipient competes for (2) Are not included as contributions the kind of services involved. In either for any other federally-assisted project case, paid fringe benefits that are rea- or program. sonable, allowable, and allocable niay (3) Are necessary and reasonable for be included in the valuation. proper and efficient accomplishment of' fe)When an employer other than the project or program objectives. recipient furnishes the services of an (4) Are allowable under the applies- employee, these services shall be val- ble cost principles. ued at the employee's regular rate of (5) Are not paid by the,Federal Gov- pay (plus an amount of fringe benefits 3. ernment under another award, except that are reasonable, allowable, and al- where authorized by Federal statute to locable, but exclusive of overhead be used for cost sharing or matching. costs), provided these services are in (6) Are provided for in the approved the same skill for which the employee budget when required by the Federal is normally paid. awarding agency. (f) Donated supplies may include (7) Conform to other provisions of such items as expendable equipment, this part;as applicable. office supplies, laboratory supplies or . (b)Unrecovered indirect costs may be workshop and classroom supplies. included as part of cost sharing or Value assessed to donated supplies in- matching only with the prior approval eluded in the cost sharing or matching of the Federal awarding agency. share shall be reasonable and shall not (c) Values for recipient contributions exceed the fair market value of the of services and property shall be estab- property at the time of the donation. lished in accordance with the applica- (g) The method used for determining ble cost principles. If a Federal award- cost sharing or matching for donated ing agency authorizes recipients to do- equipment, buildings and land for +. nate buildings or land for construction/ which title passes to the recipient may facilities acquisition projects or long- differ according to the purpose of the term use, the value of the donated award, if paragraphs (g)(1) or(2) of this property for cost sharing or matching section apply. I shall be the lesser of paragraphs (c)(1) (1) If the purpose of the award is to i:. or(2)of this section. assist the recipient in the acquisition 87 S_ . . t. i b t. §215.24 2 CFR.Ch. 11(1-1-12 Edition) . of equipment, buildings or land, the related to projects financed in whole or i total value of the donated property in part with Federal funds. ¢_. may be claimed as cost sharing or (b) Except as provided in paragraph matching. (h) of this section, program income (2) If the purpose of the, award is to earned during the project period shall L support activities that require the use be retained by the recipient and, in:ac- 1, of equipment, buildings or land, nor- cordance with Federal awarding agency mally only depreciation or use charges regulations or the terms and condi- i for equipment and buildings may be tions of the award, shall be used in one made. However, the full value of equip- or more of.the ways listed in the fol- j ment or other capital assets and fair lowing. 4 rental charges for land may be allowed, 11) Added to funds committed to the t . provided, that the Federal awarding, project by the Federal awarding agency 1 agency has approved the charges. and recipient and used to further eligi- . (h) The value of donated property ble project or program objectives. shall be determined in accordance with. (2) Used to finance the non-Federal 1 the usual accounting policies of the re- share of the project or program. cipient, with the following qualifies; (3)Deducted from the total project or ( tions. program allowable cost in.determining (1) The value of donated land and the net allowable costs on which the buildings shall not exceed its fair mar- Federal share of costs is based. k • ket value at the time of donation to (c) When an agency authorizes the the recipient as established by an indd- disposition of program income as de- 1 • Pendent appraiser (e.g., certified real scribed in paragraphs (b)(1) or (b)(2) of property-appraiser or General Services this section, program income in excessAdministration representative) and . certified by a responsible official of the of any l accordance withets stipulatedshall.be o paragraph (b)(3) of recipient. this section. (2) The value of donated equipment (d) In, the event that the Federal l' shall not exceed the fair market value awarding agency does not specify in its of equipment of the same age and con- regulations or the' terms and'condi- ` dition at the time of donation, tions of the award how program income (3) The value of donated space shall is to be used, paragraph (b)(3) of this E not exceed the fair rental value of com- section shall apply automatically to parable space as established by an inde- all projects or programs except re- i i pendent appraisal of comparable space search. For awards that support .re . and facilities hi a privately-owned search, paragraph (b)(1) of this section building in the same locality, shall apply automatically unless the i. (4) The value' of loaned equipment awarding agency indicates in the terms G. shall not exceed its fair rental value. and conditions another alternative on 1 (5) The following requirements per- the award or the recipient is subject to tam to the. recipient's supporting special award conditions, as indicated i records for in-kind contributions from in§215.14. i third parties. 4 (i) Volunteer services shall be docu- (e) Unless Federal awarding agency regulations or the terms and condi- I mented and, to the extent feasible, sup- tions of the award provide otherwise, 1 ported by the same methods used. by recipients shall..have no obligation to the recipient for its own employees. i the Federal Government regarding pro- (11) The basis for determining the gram income earned after the end of valuation for personal service, mate- the project period. rial, equipment, buildings and land (f) If authorized by Federal awarding shall be documented. i, agency regulations or the terms and is conditions of.the award, costs incident §215.24 Program income, l_ to the generation of program income i (a) Federal awarding agencies shall may be deducted from gross income to apply the standards set forth in this determine program income, provided 1 section in requiring recipient organiza- these costs have not been charged to tions to account for program income the award. . 88 • • OMB Circulars and Guidance §215.25 • (g)Proceeds from the sale of property (6) The inclusion, unless waived by shall be handled in accordance with the the Federal awarding agency, of costs requirements of the Property Stand- that require prior approval in accord- ards(see§215.30 through§215.37). ance with any of the following, as ap.- (h) Unless Federal awarding agency plicable: regulations or the terms and condition (i) 2 CFR part 220, "Cost Principles of the award provide otherwise, recipi- for Educational.Institutions (OMB Cir- ents shall have no obligation to the cular A-21);" Federal Government with respect to (ii) 2 CFR part 230, "Cost Principles • program income earned from license for Non-Profit Organizations(OM)3 Cir- fees and royalties for copyrighted ma- cular A-122);" terial, patents, patent applications, (iii) 45 CFR part 74, Appendix E, trademarks, and inventions produced "Principles for Determining Costs Ap- under an award. However, Patent and plicable to Research and Development • Trademark.Amendments (35 U.S.C. 18) under Grants and Contracts. with Hos- i apply to inventions made under an ex- pitals;"and I` perimental, developmental, or research (iv) 48 CFR part 31, "Contract Cost award. Principles and Procedures." §215.25 Revision of lfu et hind :pro (7) The transfer of funds allotted for gram plans. • training allowances (direct payment to trainees) to other categories of ex- (a) The budget plan is the financial pense. expression of the project or program as (8) Unless described in the applica- approved during the award process. It' tion and funded in the approved may include either the Federal and awards, the subaward, transfer or con- • non-Federal share, or only the Federal tracting out of any work under an share, depending upon Federal award- award.This provision does not apply to • ing agency requirements. It shall be re- the purchase of supplies, material, lated to performance for program oval- equipment or general'support services, uation purposes whenever appropriate. (d) No other prior approval require- (b) Recipients are required to report merits for specific items may be im- deviations from budget and program posed unless a deviation has been ap- plans, and request prior approvals for proved by OMB. budget and program plan revisions, in. in accordance with this section. para(�) Except for.rand (c)(en of this s o- (c) For nonconstruction awards, re- ton, Federalr awarding and (c)(4) ofagencies this sou- cipients shall request prior approvals then; wa are au- thorized,.at their option, to waive cost- from Federal awarding agencies for one related and administrative prior writ- or more of the following program or ten approvals required by 2 CFR parts budget related reasons. 220 and 230 (OMB Circulars A-21 and A- (1) Change in the scope or the objec- 122). Such_waivers may include author- tile of the project or program (even if icing recipients to do any one or more there is no associated budget revision of the following. requiring prior written approval). (1) Incur pre-award costs 90 calendar (2) Change in a key person specified days prior to award or more than 90 in the application or award document, calendar days with the prior approval (3) The absence for more than three of the Federal awarding agency. All months, or a 25 percent reduction in pre-award costs are incurred at the re- time devoted to the project, by the ap- cipient's risk (i.e., the Federal award- proved project director or principal in- ing agency is under no obligation to re- vestigator. imburse such costs if for any reason (4) The need for additional Federal the recipient does not receive an award funding. or if the award is less than anticipated (5) The transfer of amounts budgeted and inadequate to cover such costs). for indirect costs to absorb increases in (2) Initiate a one-time extension of direct costs, or vice versa, if approval the expiration date of the award of up is required by the Federal awarding to 12 months unless one or more of the • agency. following conditions apply. For one- 89 • • • §215.26 2 CFR Ch. II (1-1-12 Edition) time extensions, the recipient must no- (3) A revision is desired which in- tify the Federal awarding agency in volves specific costs for which prior writing with the supporting reasons written approval requirements may be and revised expiration date at least 10 imposed consistent with applicable days before the expiration date speci- OMB cost principles listed in§215.27. fied in the award. This one-time exten- (1) No other prior approval require- sion may not be exercised merely for ments for specific items may be im- the purpose of using unobligated bal- posed unless a deviation has been ap,. -Allees, proved by OMB. (i)The terms and conditions of award (j) When a Federal awarding agency prohibit the extension, makes an award that provides support (ii)The extension requires additional for both construction and nonconstruc- t Federal funds. tion work, the Federal awarding agen- (iii) The extension involves any cy may require the recipient to request change in the approved objectives or prior approval from the Federal award- scope of the project. ing agency before making any fund or (3) Carry forward unobligated bal- budget transfers between the two types maces to subsequent funding periods. of work supported. (4) For awards that support'research, (k) For both construction and non-, unless the Federal awarding agency construction awards, Federal awarding provides otherwise in the award or in agencies shall require recipients to no- the agency's regulations, the prior ap- tify the Federal awarding agency in proval requirements described in this writing promptly whenever the amount paragraph(e)are automatically waived of.Federal authorized funds is expected (i.e., 'recipients need not obtain such to exceed the needs of the recipient for prior approvals) unless one of the con- the project period by more than$5000 ditions included in paragraph (e)(2) ap- or five percent of the Federal award, plies. whichever is greater. This notification • (f) The Federal awarding agency shall not be required if an application may, at its option, restrict the transfer for additional funding is submitted for of funds among direct cost categories, a continuation award. or programs, functions and activities (I) When requesting 'approval for g. for awards in which the Federal share budget revisions, recipients shall use of the project exceeds $100,000 and the the budget forms that were used in the cumulative amount of such transfers. application unless the Federal award- exceeds or is expected to exceed 10 per- ing agency indicates a letter of request cent of the total budget as last ap- suffices. proved by the Federal awarding agen- (m) Within 30 calendar days from the cy. No Federal awarding agency shall date of receipt of the request for budg- permit a transfer that would cause any et revisions, Federal awarding agencies Federal appropriation or part thereof shall review the request and notify the to be used for purposes other than recipient whether the budget revisions those consistent with the original in- have been approved. If the revision is • tent of the appropriation. still under consideration at the end of • (g)All other changes.to nonconstruc- '_30 calendar days, the Federal awarding • tion budgets,except for the changes de- agency shall inform the recipient in scribed in paragraph (j) of this section, writing of the date when the recipient • do not require prior approval. may expect the decision. (h) For construction awards, recipi- [69 FR 26281, May 11,2004, as amended at 70 ents shall request prior written ap- FR 51880,Aug.31,2005) proval promptly from Federal awarding §216.26 Non-Federal audits. agencies for budget revisions whenever paragraphs (h)(1), (2) or (3) of this see- (a) Recipients and subrecipients that E tion apply. are institutions of higher education or (1)The revision results from changes other non-profit organizations (includ- in the scope or the objective of the ing hospitals) shall be subject to the project or program. audit requirements contained in the (2) The need arises for additional Single Audit Act Amendments of 1996 Federal funds to complete the project, (31 U.S.C. 7501-7507) and revised OMB ga a a F t i is t. OMB Circulars and Guidance §215.29 f. Circular A-133, "Audits of States, visions of the Federal Acquisition Reg- P Local Governments, and Non-Profit Or- ulation(FAR)at 48 CFR part 31. x. ganizations." f. (b) State and:local governments shall [70 FR.51880,Aug:31,2005� t be subject to the audit requirements §215.28 Period of availability of funds. contained in the Single Audit Act Where a funding period is specified,ali Amendments and nes of 1996 (Circular1 -133,7501- recipient may charge to the grant only 7507) and revised OMB A-133, allowable costs resulting from obliga- `"Audits of States, Local Governments, tions incurred during the funding pe- and Non-Profit Organizations." riod and any pre-award costs author- (c) For profit hospitals not covered ied by the Federal awarding agency. by the audit provisions of revised OMB Circular A-133 shall be subject to the §215.29 Conditional exemptions. i audit requirements of the Federal awarding agencies. (a) OMB authorizes conditional ex- 1 (d) Commercial organizations shall emption from OMB administrative re- i be subject to the audit requirements of quirements and cost principles circu- the Federal awarding agency or the. lags for certain Federal programswith prime recipient as incorporated into statutorily-authorized consolidated the award document. planning and consolidated administra- f tive funding, that are identified by a §215.27 Allowable costs. Federal agency and approved by the 1 head of the Executive department or ! For each kind of recipient, there is a establishment, A Federal agency-shall 1, set of Federal principles for deter- consult with ONIB during its consider- i#- mining allowable costs. Allowability of ation of whether to grant such. an ex 9.. costs shall be determined In accord- emption. t ance with the cost principles applicable (b) To promote efficiency in State 1 to the entity incurring the costs. Thus, and local program administration, allowability of costs incurred by State, when Federal non-entitlement pro- 1' local or federally-recognized. Indian, grams with common purposes have spe- tribal governments is determined in cific statutorily-authorized consoli- accordance with the provisions of 2 dated planning and consolidated- ad- CFR part 225, "Cost Principles for mipistrative funding and where most of State;Local,and Indian Tribal Govern- the State agency's resources come I ments(OMB Circular A-87." The allow- from non-Federal sources, Federal ability of costs incurred by non-profit agencies may exempt these covered , organizations is determined,in accord- State-administered, non-entitlement & ance with the provisions of 2 CFR part grant programs from certain OMB 230,"Cost:Principles for Non-Profit Or- grants management requirements. The l ganizations(0MVIB Circular A-122)."The exemptions would be from: allowability of costs incurred by insti- (1) The requirements in 2 CFR part tutions of higher education is deter- 225, "Cost Principles for State, Local, i Mined in accordance with the provi- and Indian Tribal Governments (OMB sions of 2 CFR part 220, "Cost Prin- Circular A-87)" other than the ciples for Educational Institutions allocability of costs provisions that are (OMB Circular A-21)."The allowability contained in subsection C.3 of appendix- 3 of costs incurred by hospitals is deter- A to that part; ?' mined in accordance with the provi- (2) The requirements in 2 CFR part g sions of appendix E of 45 CFR part 74, 220, "Cost Principles for Educational "Principles for Determining Costs Ap- Institutions (OMB Circular A-21)" 3 plicable to Research and Development other than the allocability of costs pro- Under Grants and Contracts with Hos- visions that are contained in paragraph pitals." The allowability of costs in- C.4 in section C of the appendix to that curred by commercial organizations part; and those non-profit organizations list- (3) The requirements in 2 OFR part ed in Attachment C to Circular A-122 is 230, "Cost Principles for Non-Profit Or- determined in accordance with the pro- ganizations (OMB Circular A-122)" ' 91 i 1 I 6 . i t 4 i 4 i , §215.30. 2 CFR Ch. II (1-1-12 Edition) F • other than,the allocability of costs pro- §215.31 Insurance coverage. visions that are in paragraph A.4 in Recipients shall, at a minimum, pro- section A of appendix A to that part; vide the equivalent insurance coverage 4.. (4) The administrative requirements for real property and equipment ao= provisions of part 215(OMB Circular A- quired with Federal funds as provided t 110, "Uniform Administrative Require- to property owned by the recipient. I. ments for. Grants and Agreements with Federally-owned property need not be i Institutions of Higher Education, Hos- insured unless required by the terms. pitals, and Other Non-Profit Organize- and conditions of the award. tions,");and (5) The agencies' grants management §215.32 Real property. • [: common rule(see.§215.5). Each Federal awarding agency shall. i (c) When a Federal agency provides prescribe requirements for recipients• . this flexibility, as a prerequisite to a concerning the use and disposition of State's exercising this option, a State real property acquired in whole or in. must adopt its own written fiscal and part under awards. Unless otherwise E administrative requirements for ex- provided by statute, such, require- pending and accounting for all funds, ments, at -a minimum, shall contain which are consistent with the provi- the following. ¢. sions of 2 CFR part 225, "Cost Prin- (a)Title to real property shall vest in ciples for State, Local, and Indian the recipient subject to the condition. Tribal Governments (OMB Circular A- that the recipient shall use the real 87)"and extend such policies to all sub- property for th'e authorized purpose of, recipients.These fiscal and administra- tho project as long as it is needed and tive requirements must be sufficiently shall not encumber the property-with- ' specific to ensure that: funds are used out approval of the Federal awarding in compliance with all applicable Fed- agency. eral statutory and regulatory provi- (b)Tile-recipient shall obtain written ,pions, costs are reasonable-and nec- approval by the Federal. awarding agen- i essary for operating these programs, cy for the use of real Property in other a and funds are not be used for general federally-sponsored projects when the. expenses required to carry out other recipient determines that the property responsibilities of a State or its sub- is no longer needed for the purpose of recipients. the original project. Use in other projects shall be limited to those under [69 FR 26281, May 11, 2004, as amended at 70 federally-sponsored projects (i.e., tt FR.51881,Aug.31,2005) awards) �or programs that have pur- S PROPERTY STANDARDS poses consistent with.those authorized t for support by the Federal awarding j §215.30 Purpose of property Bland- agency. # ards. (c) When the real property is no { Sections 215.31 through 215.37 set longer needed as provided in para- { forth uniform standards governing graphs (a) and (b) of this section, the and disposition of prop- recipient shall request disposition in- managementerty furnished by the Federal Govern- age cyor from the Federal -awarding went whose cost was charged to a agency or its successor Federal award- 1 project supported by a Federal award. ng agency. The Federal awardingagency Federal awarding agencies shall re- followwinggshall diobserven s or more of the disposition instructions. quire recipients to observe these stand- (1)The recipient may be permitted to ards under awards and shall not impose retain title without further obligation additional requirements, unless specifi- to the Federal Government after it cally required by Federal statute. The compensates the Federal Government recipient may use its own property for that percentage of the current fair management standards and procedures- market value of the property attrib- provided it observes the provisions of utable to the Federal participation in §215.31 through§215.37. the project. • 62 s. r • OMB Circulars and Guidance §215.34 (2) The recipient may'be directed to (b) Exempt property. When statutory sell the property under guidelines pro- authority exists, the Federal awarding vided by the Federal awarding agency agency has the.option to vest title to and pay the Federal Government for property acquired, with Federal funds that percentage of the. current fair in the recipient without further obliga- ; market value of the property attrib- ' tion to the Federal Government and utable to the Federal participation in under conditions the Federal awarding the project (after deducting'actual and agency considers appropriate. Such reasonable selling and fix-up expenses, property is "exempt property." Should if any, from the Sales:proceeds). When a Federal awarding agency not estab- the recipient is authorized or required lish conditions, title to exempt-prop- to sell the property, proper sales prose- e'ty upon acquisition shall vest in the i. dures shall be established that provide recipient without further obligation to for competition to the extent .prac- the Federal Government. ticable and.result in the highest poe- sible return. §215.34 Equipment, (3) The recipient may be directed.to (a) Title to equipment acquired by a transfer title to the property to the recipient with Federal funds shall vest Federal.Government or to an eligible in the recipient, subject to conditions F third party provided that, in such of this section, cases, the recipient shall be entitled to (b) The recipient shall not use equip- compensation for its attributable per- merit acquired with Federal funds to • centage of the current fair market provide services to non-Federal outside value of the property. organizations for a fee that is less than private companies charge for equiva- §215.33 Federally-owned and exempt lent services, unless specifically au- property. thorized by Federal,statute,for as long (a) Federally-owned property. (1) Title as the Federal Government retains an interest in to federally-owned property remains .the equipment. (c) The recipient shall use the equip- vested in the Federal Government. Re- meet in the project or program for cipients shall submit annually an in- Which it was acquired as long as need- ventory listing of federally-owned ed, whether or not the project or pro- property in their custody to the Fed- gram continues to be supported by Fed- eral awarding agency.Upon completion eral funds and shall not encumber the of the award or when the property is no property without approval of the Fed • - longer needed, the recipient shall re- eral awarding agency. When no longer • port the property to the Federal award- needed for, the original project or pro- ing agency for further Federal agency gram,the recipient shall use the equip- utilization. merit:in connection with its other fed- (2) If the Federal awarding. agency erally-sponsored activities, in the fo1- has no further need for the property,it lowing order of priority: shall be declared excess and reported,to (1) Activities 'sponsored by the Fed- • the General Services Administration, eral awarding agency which funded the unless the Federal awarding agency original project,then has statutory authority to dispose of (2)Activities sponsored by other Fed- the property by alternative methods eral awarding agencies. (e.g., the authority provided by the (d) During the time that equipment • Federal Technology Transfer Act (15 is used on the project or program for U.S.C. 3710 (I)) to donate research. which it was acquired, the recipient equipment to educational and non-prof- shall make it available for use on other it organizations in accordance with projects or programs if such other use i E.O. 12821, "Improving Mathematics will not interfere with the work on the and Science Education in Support of project or program for which the equip- the National Education Goals" (57 FR merit was originally acquired. First 54285, 3 CFR, 1992 Comp., p. 323)). Ap- preference for such other use shall be propriate instructions shall be issued given to other projects or programs to the recipient by the Federal award- sponsored by the Federal awarding ing agency. agency that financed the equipment; 93 f F , 1 I I §215.34 2 CFR Ch. I1 (1-1-12 Edition) i second preference shall be given to ferences between quantities deter- projects or programs sponsored by mined by the physical inspection and other Federal awarding agencies. If the those shown in the accounting records equipment is owned by the Federal shall be investigated to determine the Government, use on other activities causes of the difference. The recipient I not sponsored by the Federal Govern- shall, in connection with the inven- ment shall be permissible if authorized tory, verify the existence, current uti- by the Federal awarding agency. User ligation. and continued need for the charges shall be treated as program in- equipment,. come. - (4)A control system shall be in effect (e) When acquiring replacement to insure adequate safeguards to pre- equipment, the recipient may use the vent loss, damage, er theft of the equipment to be replaced as trade-in or equipment. Any loss, damage, or theft i sell the equipment and use the pro-. of equipment shall be investigated and 4 needs to offset the costs of the replace- fully documented; if the equipment was ment equipment subject to the ap- Owned by the Federal Government, the 1' proval of the Federal awarding agency. recipient shall promptly notify the (f) The recipient's property manage- Federal awarding agency. ment standards for equipment acquired i (5)Adequate maintenance procedures with Federal funds and federally-owned . equipment shall include all of the fol- shall be implemented to .keep the 4 lowing: equipment in good condition. (1) Equipment records shall be main- (6) Where the recipient is authorized twined accurately and shall include the or required to sell the equipment, prop- y following information. er sales procedures shall be established• (i)A description of the equipment. which provide for competition to the (ii) Manufacturer's serial number, extent practicable and result in the model number, Federal stock number, highest possible return, national stock number, or other identi- (g) When the recipient no longer Mallon number, needs the equipment, the equipment , (iii) Source.of the equipment, includ- may be used for other activities in ac- ingcordance with the following standards.the award number, i (iv) Whether title vests in the recipi- For equipment with a current per unit ent or the Federal Government. fair market value of$5000 or more, the (v) Acquisition date (or date re- recipient may retain the equipment for i ceived, if the equipment was furnished other uses provided that compensation by the Federal Government)and cost. is made to the original Federal award- (vi) Information from which one can ing agency or its successor. The I.. calculate the percentage of Federal amount of'compensation shall be corn- participation in the cost of the equip- puted by applying the percentage of I merit (not applicable to equipment fur- Federal participation in the cost of the .' nished by the Federal Government). original project or program to the cur- (vii) Location and condition of the rent fair market value of the equip- I equipment and the date the informa- ment. If the recipient has no need for 1 tion was reported. the equipment, the recipient shall re- (viii)Unit acquisition cost. quest disposition instructions from the (ix) Ultimate disposition data, in- Federal awarding agency. The Federal eluding date of disposal and sales price awarding agency shall determine or the method used to determine cur- whether the equipment can be used to t rent fair market value where a recipi- meet the agency's requirements. If no ent compensates the Federal awarding requirement exists within that agency, agency for its share. the availability of the equipment shall (2) Equipment owned by the Federal be reported to the General Services Ad- Government shall be identified to indi, ministration by the Federal awarding cate Federal ownership. agency to determine whether a require- (3)A physical inventory of equipment ment for the equipment exists in other shall be taken and the results rec- Federal agencies. The Federal award- onoiled with the equipment records at ing agency shall issue instructions to least once every two years, Any dif- the recipient no later than 120 calendar 94 , • l• • OMB Circulars.and Guidance §215.36 days after the recipient's request and the equipment shall be subject to the the following procedures shall govern. provisions for federally-owned equip- (1) If so instructed or if disposition ment. ; . instructions are not issued within 120' 3 calendar days after the recipient's re- §215.35 Supplies .and other expend- quest, the recipient shall sell the able property. equipment and reimburse the Federal (a) Title to supplies and other ex- awarding agency an amount computed pendable property shall vest in the re- by applying to the sales proceeds the eipient upon acquisition. If there is a percentage of Federal participation in residual inventory of unused supplies the cost of the original project or pro- exceeding $5000 in total aggregate gram. However, the recipient shall be value upon termination or completion permitted todeduct and retain from of the project or program and the sup- the Federal share$600 or ten percent of plies are not.needed for.any other fed- (' the proceeds, whichever is less, for the recipient's selling and. handling ex- erally-sponsored project or program, penses. the recipient shall retain the supplies t+ (2) If the recipient is instructed to for use on non-Federal sponsored ac- ship the equipment elsewhere, the re- tivities or sell them, but shall, in ei- cipient shall be reimbursed by the Fed- ther case,compensate the Federal Gov- . eral Government by an amount which ernment for its share. The amount of is computed by applying the percent- compensation shall be computed in the age of the recipient's participation in same manner as for equipment. the cost of the original project or pro- (b) The recipient Shall not use sup- i gram to the current fair market value plies acquired with Federal funds to of the equipment, plus any reasonable provide services to non-Federal outside shipping or interim storage costs in- organizations for a fee that is less than curred. private companies charge for equiva- (3) If the recipient is instructed to lent services, unless specifically au- otherwise dispose of the equipment,the thorized by Federal statute as long as recipient shall be reimbursed by the the Federal Government retains an in- Federal awarding agency for such costs terest in the supplies. L, incurred in i.ts disposition;. t (4)The Federal awarding agency may §215.36 Intangible property. reserve the right to transfer the title (a) The recipient may copyright any to the Federal Government or to work that is subject to copyright and third party named by the Federal Gov- was developed, or for, which ownership t. ernment when such third party is oth- was purchased, under an award. The erwise eligible under existing statutes. Federal awarding agency(ies) reserve'a Such transfer shall be subject to the royalty-free, nonexclusive and irrev following standards. ocable right to reproduce, publish, or (i) The equipment shall be appro- otherwise use the work for Federal pur- priately identified in the award or oth- erwise made known to the recipient in poses, and to authorize others to do so. writing. (b) Recipients are subject to applioa- (ii) The Federal awarding agency ble regulations governing patents and shall issue disposition instructions inventions, including government-wide within 120 calendar days after receipt regulations issued by the Department of a final inventory. The final inven- of Commerce at 37 CFR part 401, • tory shall list all equipment acquired "Rights to Inventions Made by Non- with grant funds and federally-owned profit Organizations and Small Busi • - equipment. If the Federal awarding ness Firms Under Government Grants, agency fails to issue disposition in- Contracts and Cooperative Agree- structions within the 120 calendar day ments." period, the recipient shall apply the (c) The Federal Government has the standards of this section, as appro- right to: priate. (1) Obtain, reproduce, publish or oth- (iii) When the Federal awarding erwise use the data first produced agency exercises its right to take title, under an award. • 95 • §215.37 2 CFR Ch. II (1-1-12 Edition) (2)Authorize others to receive,repro- (B)A Federal agency publicly and of- duce, publish,, or otherwise use such ficially cites the research findings in data for Federal purposes. support of an agency action that has (d) (1) In addition, in response to a the force and effect of law. Freedom of Information Act(FOIA) re- (iii) Used by the Federal Government quest for research data relating to pub- in developing an agency action that lished research findings produced under has the force and effect of law is de- an award that was used by the Federal fined as when an agency publicly and Government in developing an agency officially cites the research findings in, action that has the force and effect of support of an agency action that has law, the Federal awarding agency shall the force and effect.of law. request, and the recipient shall pro • - vide,"within a reasonable time, the re- (e) Title to intangible property and search data so that they can"be made debt instruments acquired under an. available.to the public through. the pro- award or.subaward vests upon acquisi cedures established under the FQIA. If tion in. the recipient. The recipient the Federal awarding agency obtains shall use that property for the origi- the research data solely in response to nally-authorized purpose, and the re- a FOIA request,the agency may charge cipient shall not encumber the prop the requester a reasonable fee equaling erty without approval of the Federal the full incremental cost of obtaining awarding agency.When no longer need- . . the research data, This fee should re- ed for the originally authorized pur- fleet costs incurred by the agency, the pose,disposition of the:intangible prop- recipient, and the applicable subrecipi- erty shall ocour in accordance with the ents. This fee is in addition to any fees provisions of§215.34(g). the agency may assess under the FOIA [69 FR 26281, May 11, 2004, as amended at 70 (5 U.S.O.552(a)(4)(A)), FR 51881,Aug.31,2005] r. (2) The following definitions apply for purposes of paragraph (d) of this §215.37 Property trust relationship. section: Real property, equipment, intangible (i)Research data is defined as the re- property and debt instruments.that are corded factual material commonly ac- acquired or improved with Federal cepted in the:scientific community as funds shall be held in trust by the re- necessary to of the following: olio ing:rch findings, cipient as trustee for the beneficiaries but not any ys of the folof scientiPficl a of the project or program under which nary analyses, drafts es scientific re the property was acquired or improved. pers, plans for future research,peer re- views, or communications with col- record may require recipients to leagues. This "recorded" material ex- cludes physical objects(e.g., laboratory tines of record to indicate that per- samples). Research data also do not in- sonal or real property has been ac- elude: quired orr improved with Federal funds (A) Trade secrets, commercial infor- and that use and disposition conditions mation, materials necessary to be held apply to the property. confidential by a researcher until they PROCUREMENT STANDARDS are published, or similar information which is protected under law;and §215.40 Purpose of procurement (B) Personnel and medical .informa- standards. tion and similar information the dis- closure of which would constitute a Sections 215.41 through 215.48 set clearly unwarranted invasion of per- forth standards for use by recipients in sonal privacy, such as information that establishing procedures for the pro- could be used to identify a particular curement of supplies and other expend- person in a research study. able property,equipment,real property (ii) Published is defined as either and other services with Federal funds. when: These standards are furnished to en- (A) Research findings are published sure that such materials and services in a peer-reviewed scientific or tech- are obtained in an effective manner nical journal; or and in compliance with the provisions 96 • . [..., I. OMB Circulars and Guidance §215.44 of applicable Federal statutes and ex- §215.43 Competition. , ecutive orders. No additional procure- All procurement transactions shall ment standards or requirements-shall be conducted. in a.manner to provide, be imposed. by the Federal awarding to the maxinium extent practical, open agencies upon recipients, unless spe- and free competition. The recipient cifically required.by Federal statute or shall be alert to organizational con- executive order or approved by OMB. flirts of interest as well as noncompeti- §215.41 Recipient responsibilities. tive practices among contractors that The standards contained in inthis sec- may restrict or eliiriinats competition tion do not ards the recipientthe or otherwise restrain trade.In_order to ensure objective contractor perform- contractual responsibilities arising anoe.and•eliminate unfair competitive under its contract(s). The recipient is advantage, contractors that develop or the responsible authority, without re- draft specifications, requirements, course to the Federal awarding agency, statements of work, invitations for • regarding the settlement and satisfac- bids and/or requests for proposals shall tion.of all contractual and administra- be excluded from .competing for such • tive issues arising out of procurements procurements:Awards shall be made to entered into in support of an award or the bidder or offeror whose bid or offer other agreement. This includes dis- is responsive to the solicitation and is putes, claims,protests of award,source most advantageous to the recipient, evaluation or other matters of a con- price, quality and other'factors consid- tractual nature. Matters concerning ered. Solicitations shall clearly set violation of statute are to be referred forth all requirements that the bidder. , • to such Federal, State or local author- or offeror shall fulfill in order for the • ity.as may have proper jurisdiction. bid or offer to be evaluated by the re- §215.42 Codes of conduct. cipient. Any and all bids or offers may • be rejected when it is in the recipient's The recipient shall maintain written interest to do so. standards of conduct governing the. performance of its employees engaged §215.44 Procurement procedures. in the award and administration of (a)All recipients shall,establish writ 1. - Contracts. No employee, officer, or ten procurement procedures. These agent shall participate in the selection, procedures shall provide for, at a,min- award, or administration of a contract imam, that paragraphs (a)(1), (2) and supported by Federal funds if a real or (3)of this section apply. f apparent conflict of interest would be (1) Recipients avoid_. purchasing uiii- r involved. Such a conflict would arise. necessary items. . when the employee, officer, or agent, (2) Where appropriate, an analysis is any member of his or her immediate. made of lease and purchase alter- ' family, his or her partner, or an orga- natives to determine which would be nization which employs or is about to the most economical and practical pro- employ any of the parties indicated curement for the Federal Government. herein,has a financial or other interest (3) Solicitations for goods and serv- in the firm selected for an award. The ' ices provide for all of the following. . officers, employees, and agents of the (i) A clear and accurate description recipient shall_ neither .solicit nor ac- of the technical requirements for the ' cept gratuities, favors, or anything of material, product or service to be pro- monetary value from contractors, or cured. In competitive procurements,, • parties to subagreements. However, re- such a description shall not contain i' cipients may set standards for situa- features which unduly restrict corn- tions in which the financial interest is petition. not substantial or the gift is an unso- (ii) Requirements which the bidder/ licited item of nominal value. The offeror must fulfill and all other fac- standards of conduct shall provide for tors to be used in evaluating bids or • disciplinary actions to be applied for proposals. , violations of such standards by offs- (iii) A description, whenever prac- cers, employees, or agents of the re- ticable, of technical requirements in cipient. terms of functions to be performed or . 97: . I i 1' 1 i §215.45 2.CFR Ch.II (1-1-12 Edition) performance required, including the propriate for the particular procure, range of acceptable characteristics or ment,and for promoting the best inter- 1 minimum acceptable standards. est of the program or project involved. (iv) The specific features of "brand The "cost-plus-a-percentage-of-cost" name or equal" descriptions that bid- or "percentage of construction cost" ders are required to meet when such methods of contracting shall not be items are included in the solicitation. used. (v) The acceptance, to the extent (d)Contracts shall be made only with practicable and economically feasible, responsible contractors who possess @ of products and services dimensioned in the potential ability to perform suc- the metric system of measurement. cessfully under the terms and condi- ; (vi) Preference, to the extent prac- Lions of the proposed, procurement. , ticable and economically feasible, for Consideration shall be given to such products and services that conserve matters as contractor integrity, record !: natural resources and,protect the envi- of past performance, financial and ronment and are energy efficient. technical resources or accessibility to (b)Positive efforts shall be made by other necessary resources. In: Certain recipients to utilize small businesses, circumstances, contracts with certain minority-owned firms, and woznen's parties are restricted by age ides. im- business enterprises, whenever pos- plementation of E.O.s 12549 and 12689, 3 sible. :Recipients of Federal awards "Debarment and Suspension." shall take all of the following steps to (e)Recipients shall,on request, make further this goal. available for the Federal awarding (l')Ensure that small businesses, mi- agency, pre-award review and.procure- i nority-owned firms, and women's buss- ment documents, such as request for ness enterprises are used to the fullest proposals or invitations for bids, rode- (. extent practicable. pendent cost estimates, etc., when any (2)Make information on forthcoming of the following conditions apply. 4 4 opportunities available and arrange (1) A recipient's procurement proce- f time frames for purchases and con- dures or operation fails to comply with tracts to encourage and facilitate par- the procurement standards in the Fed- ticipation by small businesses, minor- eral awarding agency's implementation ity-owned firms, and women's business of this part. enterprises. ; (3) Consider in the contract process (2) The procurement is expected to Z. whether firms competing for larger exceed the small purchase threshold contracts intend to subcontract with fixed at 41 U.S.C. 403 (11) (currently small businesses, minority-owned compe and is to be awarded without firms,. and women's business enter- competition or only one bid or offer isei prisos: received in response to a solicitation. (4) Encourage contracting with con- (3) The procurement, which is ex- sortiums of small businesses,minority- tpected hresh 41 exceed the small purchase ;. owned firms and women's business en- threshold, specifies a brand name" terprises when a contract is too large product. 4 for one of thesefirms to handle individ- (4) The proposed award over the ually, small purchase threshold is to be (5)Use the services and assistance, as awarded to other than the apparent appropriate, of such organizations as low bidder under a sealed bid procure the Small Business Administration and merit. I the Department of Commerce's Minor- (5) A proposed contract modification ity Business Development Agency in changes the scope of a contract or in- the solicitation and. utilization of creases the contract amount by more small businesses,minority-owned firms than the amount of the small purchase 1 and women's business enterprises. threshold. (e)The type of procuring instruments §216.46 Cost and price analysis. used(e.g.,fixed price contracts, cost re- imbursable contracts, purchase orders, Some form of cost or price analysis and incentive contracts)shall be deter- shall be made and documented in the i mined by the recipient but shall be ap- procurement files in connection with • • OMB Circulars and Guidance §215.48 every procurement action. Price anal- conditions where the contract may be +' ysis may be accomplished in various terminated because of circumstances way$, including the- comparison of beyond.the control of the contractor. • price quotations submitted, market (c) Except as otherwise required by prices and similar indicia, together statute, an award that requires the I, with discounts. Cost analysis is the re- contracting (or subcontracting) for view and evaluation of each element of construction or facility improvements cost to determine reasonableness, shall provide for the recipient to follow allocability and allowability. its own requirements relating to bid t. guarantees, performance bonds, and §215.46 Procurement records. payment bonds unless the construction Procurement records and files for contract or subcontract exceeds purchases in excess of the small pur- $100,000. For those contracts or sub • - chase threshold shall include the fol- contracts exceeding $100„000, the Fed- lowing at a minimum: eral awarding agency may accept the (a)Basis for contractor selection; bonding policy and requirements of the (b) Justification for lack of competi- recipient, provided the Federal award- Lion when competitive bids or offers ing agency has made a determination are not obtained;and that the Federal Government's interest (c)Basis for award cost or price. is adequately protected. If such a de- termination has not been made, the §.215.47 Contract administration. minimum requirements shall be as fol- A system for contract administration lows. shall be maintained to ensure con- (1) A bid guarantee from.each bidder tractor conformance with the terms, equivalent to five percent of the bid conditions and specifications of the price. The "bid guarantee" shall con- contract and to ensure adequate and sist of a firm commitment such as a timely follow up of all purchases. Re- bid bond, certified check, or other ne- cipients shall evaluate contractor per gotiable instrument accompanying a formance and document, as appro- bid as assurance that the bidder shall, priate, whether contractors have met upon acceptance of his bid, execute the terms, conditions and specifica- such contractual documents as may be tions of the contract:: required within the time specified. §215.48 Contract provisions. (2)A performance bond on.the part of P the contractor for 100 percent of the The recipient shall include, in addi- contract price. A "performance bond" tion to provisions to define a.sound and is one executed, in connection with a complete agreement, the following pro- contract to secure fulfillment:of all the visions in all contracts. The following contractor's obligations under such • provisions shall also be applied to sub- contract. contracts: (3)A payment bond on the part of the (a) Contracts in excess of the small contractor for 100 percent of the con- purchase 'threshold shall contain con- tract price. A "payment bond" is one tractual provisions or conditions that executed in connection with a contract • allow for administrative, contractual, to assure payment as required by stat- or legal remedies in instances in which ute of all persons supplying labor and a contractor violates or breaches the material in the execution of the work contract terms, and provide for such provided for in the contract. remedial actions as may be appro- (4) Where bonds are required in the priate. situations described herein, the bonds (b) All contracts in excess of the shall be obtained from companies hold- small purchase threshold shall contain ing certificates of authority as accept- suitable provisions for termination by able sureties pursuant to 31 CFR part the recipient, including the manner by 223, "Surety Companies Doing Business which termination shall be effected with the United States." and the basis for settlement. In addi- (d) All negotiated contracts (except tion, such contracts shall describe con- those for less than the small purchase ditions under which the contract may threshold) awarded by recipients shall • • be terminated for default as well as include a provision to the effect that 99 f 1 t 14 I 1 i I f §215.50 2 CFR.Ch. 11(1-.1-12 Edition) 1 the recipient, the Federal awarding '(d) When required, performance re- agency, the Comptroller General of the ports shall generally contain, for each , United States, or any of their duly au- award, brief information on each of the thorized representatives, shall have ac- following. cess to any books, documents, papers (1) A comparison.. of actual accom- and records of the contractor which are plishments with the goals and objec- , directly pertinent to a specific pro- tives established for the period, the gram for the purpose of making audits, findings of the investigator, or both. examinations, excerpts and tran- Whenever appropriate and the output { scriptions. of programs or projects can be readily (e) All contracts, including small quantified, such quantitative data i purchases, awarded by recipients and should be related to cost data for coin- i- . their contractors shall contain the pro- putation of unit costs. . cerement provisions of appendix A to (2) Reasons why established. goals o this part,as applicable. were not met,if appropriate. (3) Other pertinent information in- 7 REPORTS AND RECORDS eluding, . when appropriate, analysis and explanation of cost overruns or §215.50 Purpose of reports And. high unit costs. records. (e).Recipients shall not be required to Sections 215.51 through 215.53 set submit more than the original and two. forth the procedures for monitoring copies of performance reports. 1. and reporting on the recipient's.finan (I) Recipients shall.immediately no , vial and program performance and the tify the Federal awarding agency of de- necessary standard reporting forms. velopments that have.a significant im- 'They also set forth record retention re- pact on the award-supported,activities. quirements. Also, notification shall be given in the case of problems, delays, or adverse §215.51 Monitoring and reporting pro- conditions which materially impair the ' gram performance. ability to meet the objectives of the (a) Recipients are responsible for award. This notification shall include a managing and monitoring each project, statement of the action taken or con- program, subaward, function or aetiv- to resole and any assistance needed ity supported by the award. Recipients to resolve the situation. shall monitor subawards to ensure sub- ;7 Federal awarding agencies mag make site visits, as needed. , recipients have met the audit require- (h) Federal. awarding agencies shall ments as delineated in§215.26. comply with.clearance requirements of (b) The Federal awarding agency 5 CFR part 1320 when requesting per- shall prescribe the frequency with formance data from recipients. which the performance reports shall be , submitted. Except as provided in §215.52 Financial reporting. §215.51(f), performance reports shall (a)The following forms or such other t. not be required more frequently than forms as may be approved by 0MB are f quarterly or, less frequently than an- authorized for obtaining financial in- I nually, Annual reports shall be due 90 formation from recipients. • calendar days after the grant year; (1) SF=269 or SF-269A, Financial Sta- quarterly or semi-annual reports shall tus Report. I be due 30 days after the reporting pe- (i) Bach Federal awarding agency riod.The Federal awarding agency may shall require recipients to use the SF- i . require annual reports before the anni- 269 or SF-269A to report the status of versary dates of' multiple year awards funds for all nonconstruction projects in lieu of these requirements. The final or programs. A Federal awarding agen- i performance reports are due 90 cal- cy may, however, have the option of I. endar days after the expiration or ter- not requiring the SF-269 or SF-269A • mination of the award. when the SF-270, Request for Advance (c).If inappropriate, a final technical or Reimbursement, or SF-272, Report or performance report shall not be re- of Federal Cash Transactions,.is deter- I quired after completion of the project. mined to provide adequate information 16.o.i . i • OMB Circulars and Guidance §215.52 7 to meet its needs, except that a final days. Recipients shall, provide short SF-269 or SF-269A shall be required at narrative explanations of actions taken the completion of the project when the to reduce the excess balances. SF-270 is used only for advances. (iv) Recipients shall be required to `: (ii) The Federal awarding agency submit not more than the original and shall prescribe whether the report shall two copies of the SF-272 16 calendar be on a cash or accrual, basis. If the days.following the end of each quarter. Federal awarding agency requires ea- The Federal awarding agencies may re- cruel information and the recipient's quire a monthly report from those re- accounting records are not normally cipients receiving advances totaling $1 kept on the accrual basis, the recipient million or more per year. ' shall not be required to convert its ac- (v) Federal.awarding agencies may ti counting system, but shall develop waive'the requirement for submission such accrual information through best of the SF-272 for any one of the fol- estimates based on an analysis of the lowing reasons: documentation on hand: (A) When monthly advances do not (111) The Federal awarding agency exceed $25,000 per recipient, provided i shall determine the frequency of the that suoh advances are monitored f. Financial Status Report for each through ether.forms contained in this project or program, considering the , size and complexity of the particular section: A (B) lf, in the Federal awarding agen- project or program. However, the re- cy's opinion, the recipient's accounting • port shall not be required more fre- controls are adequate to minimize ex- quently than quarterly or less fre eessive Federal advances;or, • quently than annually. A final report shall be required at the completion of (C) When the electronic payment the agreement. mechanisms provide adequate data, (iv) The Federal awarding agency (b) When the Federal awarding agen- shall require recipients to submit the cy needs additional information or more frequent reports, thefollowing S o SF-269 or SF-269A (an original and nog more than two copies) no later than 30 shall be observed. days after the end of each specified re- (1) When additional information is a: porting period for quarterly and semi- needed to comply with legislative re- annual reports, and 90 calendar days quirements, Federal awarding agencies i. for annual and final reports. Exten- .Shall issue instructions to require re- sions of reporting due dates may be ap- cipients to submit such information I. proved by the Federal awarding agency under the "Remarks" section of the re- upon.request of the recipient: ports. (2) SF-272, Report of.:Federal .dash (2) When a Federal awarding agency Transactions. determines that a recipient's account- (1) When funds are advanced to,:re- ing system does not meet th,s.standards cipients the Federal awarding agency in. §215.21, additional pertinent infor- I shall require each recipient to submit mation to further monitor awards may the SF-272 and, when necessary, its be obtained upon written notice to the continuation sheet, SF-272a. The Fed- recipient until such time as the system 1 eral awarding agency shall use this re- is brought up to standard. The Federal port to monitor cash advanced to re- awarding agency, in obtaining this in- eipients and to obtain disbursement.in- formation, shall comply with report • formation for each agreement with the clearance requirements of 5 CFR part recipients. 1320. j (ii) Federal awarding agencies may (3) Federal awarding agencies are en- require forecasts of Federal cash re- couraged to shade out any line item on quirements in the "Remarks" section any report if not necessary. of the report. (4) Federal awarding agencies may (iii) When practical and deemed nec- accept the identical information from essary, Federal awarding agencies may the recipients in machine readable for- require recipients to report in the mat or computer printouts or elec • - "Remarks" section the amount of cash tronic outputs in lieu of prescribed for- advances received in excess of three mats. 101. . L.. §215.53 2 CFR Ch. II (1-1-12 Edition) (5) Federal awarding agencies may (e)The Federal awarding agency, the provide computer or electronic outputs Inspector General, Comptroller Gen- to recipients when such expedites or era of the. United States, or any of contributes to the accuracy of report- their duly authorized,representatives, ing. have the right of timely and unre- • stricted access to any books, docu- §215.53 Retention and access require- ments, papers, or other records of re meats for records. ciplents that are pertinent to the (a) This section sets forth require- awards, in order to make audits, ex- ments for record retention and access aminations, excerpts, transcripts and to records for awards to recipients. copies of such documents. This right Federal awarding agencies shall not also includes timely and reasonable ac- impose any other record retention or tees to a recipient's personnel for the access requirements upon recipients, purpose of interview and discussion re- (b)Financial records, supporting doc- fated to such documents.The rights of uments, statistical records, and •all access in this paragraph are not limn other, records pertinent to an award ited to the required.retention period, shall be retained for a period of,three but shall last as long as records are re- years from the date of submission of taizied. the final expenditure report or, for (f) Unless required by statute, no awards that are renewed quarterly or Federal awarding agency shall place annually, from the date of the submis- restrictions on recipients that limit. sion of the quarterly or annual finan- public access to the records of recipi- cial report, as authorized by the Fed- eats that are pertinent to an award, ex- eral awarding agency. The.only excep- cept when the Federal awarding agency tions are the following. can demonstrate that such records (1)If any litigation,.claim, or audit is shall be kept confidential and would started before the expiration of the 3- have been exempted from disclosure year period, the records shall be re- pursuant to the Freedom of Informa- tailed, until all litigation, claims or tion Act (5 U.S.C. 552) if the records audit findings involving the records had belonged to the Federal awarding have been resolved and final action agency. • taken. (g) Indirect cost rate proposals, cost al- (2) Records for real property and locations plans, etc. Paragraphs (g)(1) equipment acquired with Federal funds and (g)(2) of this section apply to the shall be_retained for 3 years after final following types of:documents,and their disposition. supporting records: indirect cost rate (3)When records are transferred to or computations or proposals, cost alloca- maintained by the Federal awarding tion plans, and any similar accounting agency, the 3-year retention require- computations of the rate at which a ment is not applicable to the recipient. particular group of costs is chargeable (4) Indirect cost rate proposals, cost (such as computer usage chargebaok allocations plans, etc. as specified in rates or composite fringe benefit r, . §215.53(g). rates). (c) Copies of original records may he (1) If submitted for negotiation. If the F substituted for the original records if recipient submits to the Federal authorized by the Federal awarding awarding agency or the subrecipient agency. submits to the recipient the proposal, (d) The Federal awarding agency plan, or other computation to form the shall request transfer of certain basis for negotiation of the rate, then records to its custody from recipients the 3-year retention period for its sup- when it determines that the records porting records starts on the date of possess long term retention value. such submission. However, in order to avoid duplicate (2) If not'submitted for negotiation. If • recordkeeping, a Federal awarding the recipient is not required to submit agency may make arrangerrients for re- to the Federal awarding agency or the cipients to retain any records that are subrecipient is not required to submit continuously needed_for joint use: to the recipient the proposal, plan, or 102, • 3 t il z. t • OMB Circulars and Guidance. §215.62 other computation for negotiation pur- the terms and conditions of an award, poses, then the 3-year retention period whether stated in a Federal statute, for the proposal, plan, or other core- regulation, assurance, application, or potation and its supporting records notice of award, the .Federal awarding t. starts at the end of the,fiscal year (or agency may, in addition to imposing } other accounting period) covered by any.of the special conditions outlined ;,_ the proposal, plan, or other computa- in §215.14, take one or more of the fol- tion. lowing actions, as appropriate in the §. circumstances. i. TERMINATION AND I�IFORCEMEN.T' (1) Temporarily withhold cash pay- ments pending correction of the defi- §216.60 Purpose of termination and ciency by the recipient or more severe enforcement. enforcement action by the Federal Sections 215.61 and 215.62 set forth awarding agency. f• uniform suspension, termination and (2)Disallow(that is, deny both use of enforcement procedures. funds and any applicable matching §215.61 Termination, credit for) all or part of the cost of the • activity or action,not in compliance. (a) Awards may be terminated .in (3) Wholly or partly suspend or.ter- whole or in part only if paragraphs minate the current award, (a)(1),(2).or(3)of this section apply. (4) Withhold. further awards'Mr.•the • (1) By the Federal awarding agency, project or.program. if a recipient materially fails to corn- (5) Take other remedies that may be K; ply with the terms and conditions of an legally available. i award. (b)Hearings and.appeciis. In.taking an €. (2) By the Federal awarding agency enforcement action, the awarding with the consent of the recipient, in agency shall provide the recipient an which case the two parties shall agree opportunity for hearing, appeal, or .. upon the termination conditions, in- other administrative proceeding to i eluding the effective date and, in the which the recipient is entitled under case of partial termination, the portion any statute or regulation applicable to f to be terminated. the action involved. • (3) By the recipient upon sending'to (c) Effects of .suspension and termi- i; - the Federal awarding agency written nation. Costs of a recipient resulting notification setting forth the reasons from obligations incurred by the re- for such termination, the effective cipient during a suspension or after ;.• , date, and, in the case of partial.terini- termination of an award are not allow- 1; nation, the portion to be terminated: able unless the awarding agency ex I. - However,if:the Federal awarding agen-, pressly authorizes them in the notice cy determines in the case of partial of suspension or termination or subse- termination that the reduced or mods- quently. Other recipient costs during fled portion of the grant will not ac- suspension or after termination which complish the purposes for which the s,re necessary and not reasonably I_ grant was made, it may: terminate the avoidable are allowable if paragraphs grant in its entirety under either para- (c)(1)and(2)of this section apply. I graphs(a)(1)or(2)of this section. (1) The costs result from obligations (b) If costs are allowed under an which were properly incurred by the re- award, the responsibilities of the re- cipient before the effective date of sus- P cipient referred to in§215.71(a), includ- pension or termination, are not in an- ing those for property management as ticipation of it,and in the case of a ter- applicable, shall be considered in the mination, are noncancellable. ! termination of the award, and provi- (2) The costs would be allowable if i sion shall be made for continuing re- the award were not suspended or ex- sponsibilities of the recipient after ter- pired normally at the end of the fund- mination, as appropriate. ing period. in which. the termination L • takes §215.62; Enforcement. (d) Relationship t act.lationship to debarment and sus- 1 • (a)Remedies for noncompliance.If a re- pension. The enforcement remedies i cipient materially fails to comply with identified in this section, including i l 103 1 i• 1. t f ii I §215.70 2 CFR Ch. II(1-1-12 Edition) 1, suspension and termination, do not an award, the Federal awarding agency • preclude a recipient from being subject shall retain the right to reco cer an ap- ' to debarment and suspension under propriate amount after fully consid- E.O.s 12549 and 12689 and the Federal ering the recommendations en das awarding agency implementing regula- allowed costs resulting from. the final ' tions(see§215.13). audit. Subpart D—After-the-Awara §215.72 Subsequent adin'sttnents mid. ; continuing responsibilities. t Requirements +, (a)The closeout of an award does not A: §2.15.70 Purpose. affect any of the following: Sections 215.71 through 215.73 contain (1) The right of the Federal awarding closeout procedures and other proce- agency to disallow costs and recover 1 dures for subsequent disallowances and funds on the basis of a later audit or adjustments. other review. (2) The obligation of the recipient to i. §215.71 Closeout procedures. return any funds due as a result of (a)Recipients shall submit, within 90 later refunds, corrections, or other calendar days after the date of comple- transactions. 1 tion of the award, all financial, per- (3)Audit requirements in§215.26. 1 formai:we, and other reports as required (4) Property management require s by the terms and conditions of the menu in§§215.31 through as2 required. f award. The Federal awardingagency (5) Records retention "in g §21b.53. I. may approve extensions when re- (b)After closeout of an award., a rela- quested by the.recipient. tionship created under an award may (b)Unless the Federal awarding agen be modified or ended in whole or in t cy authorizes an extension, a recipient i shall.liquidate all obligations incurred part with the consent of the Federal awarding agency and the recipient, i` under the award not later than 90,cal- provided the responsibilities of the re- ` endar days after the funding period or N the date of completion as specified in this st referred to in paragraph (a) of the terms and conditions of the award this. section, including those for prop- erty management or in agency implementing instruc- as applicable, are tions. considered and provisions made for (c) The Federal awarding agency continuing responsibilities of the re- shall make prompt payments to a re- cipient,as appropriate. _ cipient for allowable reimbursable (69 FR 26281, May 11, 2004, as amended at 70 costs under the award being closed out: FR•51881,Aug.31,20051 (d) The recipient shall promptly re- fund any balances of unobligated cash §215.73 Collection of amounts due. ., that the Federal awarding agency has (a) Any funds paid to a recipient in 1' advanced or paid and that is not au- excess of the amount to which the re- thorized to be retained by the recipient cipient is finally determined to be entl- for use in other projects. OMB Circular tied under the terms and conditions of L A-129 governs unreturned amounts that the award constitute a debt to the Fed- become delinquent debts. eral Government. If not paid within a (e)When authorized by the terms and reasonable period after the demand for conditions of the award, the Federal payment, the Federal awarding agency awarding agency shall make a settle- may reduce the debt by paragraphs , ment for any upward or downward ad- (a)(1), (2)or(3)of this section. justments to the Federal share of.costs <1) Making an administrative offset after closeout reports are received. against other requests for reimburse- (f) The recipient shall account for ments. any real and personal property ac- (2) Withholding advance payments quired with Federal funds or received otherwise due to the recipient. from the Federal Government in ac- (3) Taking other action permitted by cordance with§215.31 through§215.37. statute. (g)In the event a final audit has not ' (b) Except as otherwise provided by i. been performed prior to the closeout of law, the Federal awarding agency shall • 144. • 1 I IT I OMB Circulars and Guidance Pt. 215, App.A • charge interest on an. overdue debt in port all suspected or reported violation$ to t`: accordance with 4 CFR Chapter II, the Federal awarding agency. "Federal Claims Collection Stand- 4.Contract Work Hours and Safety.Stundards ards." Act (40 U.S.C. 327-333)—Where applicable, all contracts awarded by recipients in excess of APPENDIX A TO PART 21rrCONTRACT $2000 for construction contracts and in ex- cuss of$2500 for other contracts.that involve PROVISIONS the employment of.mechanics or laborers, shall.include a provision for compliance with All contracts, awarded by a recipient in- sections 102 and 1.07 of the'Contract Work eluding small purchases., shall contain the Hours and Safety Standards Act (40 U,S,C.. following provisions as.applicable: 327-333), as supplemented by Department of 1. Equal-Employment-Opportunity—All con- Labor regulations(29 CFR part 5).Under sec- f. tracts shall contain a provision requiring thin 102 of the Act,each contractor shallbe con-ip1iarce with E.O. 11246, "Equal Employ- required to compute the wages of every me- ment Opportunity" (30 FR 12319, 12935, 3 chanic and laborer on the basis of a standard CFR, 1964-4965 Comp.,p.239),as amended.by work week of 40 hours.Work in excess of'the F:r E.O. 11375. "Amending Executive Order 11246 standard work week is permissible provided Relating to Equal Employment Oppor- that the worker is compensated at a rate of tunity," and as supplemented by regulations not less than l%times the basic rate of.pay at,�41 CFR part 60, "Office of Federal Con- for all hours worked in excess of 40 hours in tract Compliance Programs. Equal Employ- the Work week..Section 107 of the Act is ap- ment Opportunity,Department of Labor. plicable to construction work and provides 2. Copeland "Anti-Kickback" Act (18 U.S.C, that no laborer or mechanic shall.be required 1. 874 and 40 U.S.C.276c)—All contracts and sub- to work'in surroundings or under working #, grants in excess of$2000 for construction or conditions which are unsanitary, hazardous. L repair awarded by recipients and subrecipi- or dangerous. Those requirements do not ents,shall include a provision for compliance apply to the purchases o[_supplies or mate- with.the Copeland "Anti-Kickback" Act (le rials or articles ordinarily available on..the 66 U.S.C. 874), as supplemented by Department open market,or contracts for transportation t of Labor regulations (29 CFR part 3, "Con- or transmission of intelligence, t tractors and Subcontractors on Public Build- 5. Rights to Inventions Made Under aCon- ing'or Public Work Financed in Whole or in tract or Agreement—Contracts or agreements I Part by Loans or Grants from the United for the performance of experimental, devel E States"). 'rho rig ho Act provides that each con- al, or research work shall provide for the rights of the Federal Government and tractor or subrecipient shall be prohibited t the recipient in any resulting invention in from inducing, by any means, any person ( employed in the construction,completion,or accordance with 37 CFR partUl, "Rights to . Inventions Made by Nonprofit Organizations repair of public work, to give up any part of and Small Business Firms Under Govern t the•compensation to which he is otherwise ment Grants, Contracts and Cooperative ` ' entitled, The recipient shall report all sus- Agreements,"and any implementing regale- t pected or reported violations to the Federal Liens issued by the awarding agency., awarding agency. 6. Clean Air Act (42 U.S.C. 7401 et see.) and 3. Davis-Bacon Act, as amended (40 U.S.C. the Federal Water Pollution Control Act (33 276a to a-7)-When required by Federal pro- U.S.C. 1251 et seq.), as amended—Contracts. gram legislation. all construction contracts and subgrants of amounts in excess of awarded by the recipients and subrecipients $100,000 shall contain a provision that re- t of more than$2000 shall include a provision quires the recipient to agree•to comply with for compliance with the Davis-Bacon Act(40 all applicable standards, orders or.regula- U.S,C. 276a to a-7) and as supplemented by tions issued pursuant to the Clean Air Act E Department of Labor regulations (29 CPR (42 U.S.C.7401 et seq.)and the Federal Water part 5,"Labor Standards Provisions Applica- Pollution Control Act as amended(33 U.S.C. I. ble to Contracts Governing Federally Fi- 1251 et seq.). Violations shall be reported to nanced and Assisted Construction"). Under the Federal awarding agency and the Re- this Act,contractors shall be required to pay Vona' Office of the Environmental Protec- I wages,to laborers and mechanics at a rate tion Agency(EPA). not less than the minimum wages specified 7. Byrd Anti-Lobbying Amendment(31 U.S.C. in a wage determination made by the Sec- 1352)—Contractors who apply or bid for an retary of Labor. In addition, contractors award of $100,000 or more shall file the re- I shall be required to pay wages not less than quired certification. Each tier certifies to once a week.The recipient shall place a copy. the tier above that it will not and has not ' of the current prevailing wage determination used Federal appropriated funds to pay-any issued by the Department of Labor in each person or organization for influencing or at- solicitation and the award of a contract shall tempting to influence an officer or employee be conditioned upon'the acceptance of the of any agency,a member of Congress,officer I Wage determination. The recipient shall re- or employee of Congress,or an employee of a 1'0' I 1 j ' A Pt.220 2 CFR Ch. 11 (1-1-12 Edition) i; . member of Congress in connection with ob- §220.10 Scope. t, tabling-any'Federal contract, grant or any other award covered by 31 U.S.C.1352. Each The principles in this part deal with tier shall also disclose any lobbying with the subject of cost determination, and non-Federal funds that takes place in con- make no attempt to identify the sin• . nection with obtaining any Federal'award. cumstances or dictate the extent of Such disclosures are forwarded from tier to agency and institutional participation tier up to the recipient. in the financing of a particular.project. 8. Debarment and Suspension (E.O.s 12549 Provision for profit or other increment and. 12689)—A contract award with an above Cost is outside the scope of this 1 amount expected to equal or exceed $25,000 part. and certain other contract awards(see 2 CFR 180.220')shall not be made to parties listed on §220.15 Policy. the government-wide Excluded Parties List System, in accordance with the OMB guide- The principles in this part are de- lines at 2 CFR part 180 that implement E.O.s signed to provide that the Federal Gov- • .12549 (3 CFR, 1986 Comp., p. 189) and 12689 (3 ernment bear its fair share of total i CFR, 1989 Comp., p. 235), "Debarment and costs, determined in accordance with Suspension."The Excluded Parties List Sys- generally accepted accounting prin tem contains the names of parties debarred, ciples, except where restricted or pro- suspended, or otherwise excluded by agen- hibited by law. Agencies are. not ex- cieg; as well as parties declared ineligible pected to place additional restrictions under statutory or regulatory authority on individual items of, cost The stic- other than E.O.12549. cessful application of_cost accounting .[69 FR 26281, May 11, 2004, as amended at 70 principles,requires development of mu- PR 51879,Aug.31.2005] tual understanding between represent- atives of educational institutions and PARTS 216-219 [RESERVED] of the.Federal Government}'as to.their , scope, implementation, and interpreta- PART 220—COST PRINCIPLES. FOR ton. EDUCATIONAL. INSTITUTIONS §220.20 Applicability. (OMB CIRCULAR A-21) (a) All Federal agencies that sponsor ` research and development, training, Sec. and other work at educational.institu- a220.5 Purpose. . 220.10 Scope. tions shall apply the provisions of Ap- 220..15 Policy. pendix A to this part in determining 220.20 Applicability, the costs incurred for such work. The • 220.25 OMB responsibilities. principles shall also be used as a guide 220.30 Federal agency responsibilities. in the pricing of fixed pTice or:lump 220.35 Effective date of changes. Sum agreements. 220.40 Relationship to previous issuance. (b) Each federal agency that awards 220.95 Information contact, defense-related contracts to a Feder- ally Funded Research and Development APPENDIX A TO PART 220—PRINCIPLES FOR DE- Cehter (FFRDC) associated with an ` TDRMINING COSTS APPLICABLE TO GRANTS, educational institution shall require • CONTRACTS,AND OTHER AGREEMENTS WITH • EDUCATIONAL INSTITUTIONS the FFRDC to comply with the Cost •Accounting Standards and with the AUTHORITY: 31 U.S.C. 503: 31 U.S.C. 1111; 41 rules and regulations issued by the U.S.C.405;Reorganization Plan No.2 of 1970; Cost Accounting Standards Board and t. E.O. 11541, 35 FR 10737, 3 CFR, 1966-1970, p,., set forth in 47 CFR part 99. 939. SOURCE: 70 FR 51881, Aug. 31, 2005, unless §220.25 OMB responsibilities. otherwise noted, OMB is responsible for: §220.5 Purpose. (a)Issuing and'maintaining the guid- mice,in this part.. This part establishes principles for (b) Interpreting the policy .require- determining costs applicable to grants, ments in this part and providing assist- contracts, and other agreements with ance to ensure effective and efficient educational institutions, implementation. 106. .„ ‘7,,-„7,7> b----r.F-- ----c--2-zue,..,-- 7 O.S. DEPARTMENT OF HUD 04/11/2017 STATE: NEBRASKA -----^ —,-- . - 2017 ADJUSTED HOME INCOME LIMITS _ PROGI E-. 1 PERSON 2 RSON 3 :PERSON' 4 PERSON 5 PERSON. '6 PF.dt$0 4 1 PER SON 8 PERSON: • Hall County, NE HUD Metro FMR Area 30% LIMITS 13200 15050 16950 18800 20350 21850 23350 24850 VERY LOW INCOME 21950 25050 28200 31300 33850 36350 38850 41350 60% LIMITS 26340 30060 33840 37560 40620 43620 46620 49620 LOW INCOME 35100 40100 45100 50100 54150 58150 62150 66150 0ami1tan. County, NE HOD Metro FMR Area 30% LIMITS 14250 16250 18300 20300 21950 23550 25200 26800 VERY LOW INCOME 23700 27100 30500 33850 36600 39300 42000 44700 60% LIMITS 28440 32520 3.6600 40620 43920 47160 50400 53640 LOW INCOME 37950 43350 48750 54150 58500 62850 67150 71500 • Howard County, NE HUD Metro .FMR Area 30% LIMITS 13450 15400 17300 19200 20750 22300 23850 25350 VERY LOW INCOME 22400 .25600 28800 32000 34600 37150 39700 42250 60% .LIMITS 26880 30720 34560 38400 41520 44580 47640 50700 LOW INCOME 35850 41000 46100 51200 55300 59400 63500 67600 Merrick County, NE HUD Metro MR Area 30% LIMITS 13200 15050 16950 18800 20350 21850 23350 24850 VERY LOW INCOME 21950 -25050 28200 31300 . 33850 36350 38850 41350 60% LIMITS 26340 30060 33840 37560 40620 43620 46620 49620 LOW INCOME 35100 40100 45100 50100 54150 58150 62150 66150 Lincoln, NE HUD Metro F R Area 30% :LIMITS 15150 17300 19450 21600 23350 25100 26800 28550 VERY LOW INCOME 25200 28800 32400 36000 38900 41800 44650 47550 60% LIMITS 30240 34560 38880 43200 46680 50160 53580 57060 LOW INCOME 40350 46100 51850 57600 62250 66850 71450 76050 Seward County, NE HOD Metro FMR Area ` 30% LIMITS 15750 18000 20250 22450 24250 26050 27850 29650 VERY 'LOW INCOME 26250 30000 33750 37450 40450 43450 46450 49450 60% LIMITS 31500 36000 40500 44940 48540 52140 55740 • 59340 LOW INCOME 41950 47950 53950 59900 64700 69500 74300 79100 r ; ., 12 3''b ur YA' >.� W1� '- lieMilityA 30% LIMITS - 15750:, isoo0A 020250 22500 24300 26100 27900 29700. VERY LOW INCOM£ 43/0 62S0 '30`000" -33750's 7500) :; ,40500' 43500 - �4�05 l-. 49500 ;!., 60% LIMITS 31500 36000 40500 45000 48600 52200 55800 59400 LOW INCOME 42000 48000'. 54000 60000 64800 69600 74400 79200 /f9c)/'0 f 2,Sa'C? ,:Ob may, �S do0 j-l/ 60'0 ,S27 ' . 1�?,OOO . /' / 4 .. , U.S. DEPARTMENT OF'HUD 04/2017 STATE: NEBRASKA --7,------ -- - 2017 HOME PROGRAM RENTS . .. . .. ;FROGM64 ;EFFIC,MfOY. .1 BR •2i:138 .4.11.4. 4:14 •'S.HR. ,f,:BR . • . . . Omaha-Council Bluffs, NE-IA HUD Metro FMR A . LOW HOME RENT LIMIT $ 8:. :703; ''545 OS 1087 .1200 1312 HIGH ROME RENT LIMIT ,66,:7 11:5 :04 3,2-40 1315 1512 1681 For Information Only: . ,FAIR MARKET RENT 568. 715, 094 1283 1315 1512 1118 50% RENT LIMIT OA 74* 843 _r$ 1087 1200 nil 65% BENT LIMIT 874 938, 1127 1.2914 1424 1552 101. SaunderS toviiit:y, NE HUD Metro Ma Area . .. LOW HOME RENT LIMIT ASO': ',5s1 146 1002 1118 .1234 1349 HIGH HOME RENT LIMIT 400: :'557. 740, 1011 1262 1451, '1641 ' For Information Only: . 1 FAIR MARKET RENT 480 ,M, 740. X011 /:202.: 1451 IFAI . _. „._ 50% RENT LIMIT -6..75 1.0 867 so* ;Ala, 1234 '1343: 6,5% RENT LIMIT sdfl 974' 1171 1, 43 141F7 -1013., 1147 • Sioux City, IA-NE-SD HOD Metro IMR Area LOW HOME RENT LIMIT . Ott: S'e'.7 .720 F41 927 1023 1118 . HIGH SOME RENT LIMIT 478, .S67 753 -40 1038 1194 1349 For Information Only: FAIR MARKET RENT 47E. 567. 753 -94'2 103A 4.1.84,. 1.349 .., 50% RENT LIMIT 5.60, 6011 720 -a31, 927 1023 111.A. AP% RENT LIMIT IFS(: -845 1016 116$ 1280 1894, 4608: Pars County, OE LOW BOMB RENT LIMIT :41.81' 1482' ;F4F iW) 922 .1060 1199 _. miss HOME BENT LIMIT ' 4191 492 .1646 820 922 1060 1199 For information Only: FAIR MARKET:RENT 410,; A:92 :64,6 szo: PgZ:, Amor. 1199 • 50% RENT LIMIT AO: ...04 1.041: 461 rObs 1109 .1212 65% RENT LIMIT H4Si .-9.07 lODI 1251 /47:Ff : 1500 1623 Antelope County,*.: . . . . .... LOW HOME RENT:IIMIT 419 547. 646 8'14 oStr 1002 1095 HIGH HOME RENT LIMIT 419 547 646 48S 890- 10,24 1157 For Information Only: FAIR MARKET RENT .41.0: 547 .f.646. 885 890 1024 1157 ...... 50% RENT'IIMIT S48. :587 lot OA 900 1002 1095 . :... “ ,.. ... 65!4,RENT:LIMIT ..ISF 491 ',.451 1080 lisW 1301 1406 Arthur County, NE . row HOME RENT LIMIT 515 587 '705 til4 908 1002 i09. Rua HOME RENT LIMIT ',515 597 794 999:, 1094 1258 1406 For Information Only: FAIR MARKET RENT 40- 597 ':11:94: 993.' 1084: 1258 :1422 50% RENT LIMIT S48.. .58"1 705 0i4 9041 -100* 1095 ., .• . ..,., 65% BENT LIMIT 73,6, 101 , '.:-Ot 1090 Iisc: 1301 1406 • . . Fog all HOME projects, the.maxim allowable rent is *.46:107p: calculated High HOME Rent Zimit and/or Low HOME Rent Limit. --. .- • • _ • . AFFIDAVIT Applicant—Income State of Nebraska ) )§ County.of Douglas ) TO: Whom It May Concern: I, Affiant/s herein, being first duly sworn on oath, state and certify that I have reported all of my income to the City of Omaha in accordance with the following Definition of Income: " CITY OF OMAHA - DEFINITION OF INCOME Annual Income Includes: 1. Wages, salaries,tips, commissions, etc.; 2. Self-employment income from owned non-farm business, including proprietorships and partnerships; income from other self-employment sources; 3. Farm self-employment income; 4. Interest,dividends,net rental income, or income from estates or trusts, or regular recurring gifts; 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. OPPORTUNITY Q:Library/HCD Forms/Affidavit Applicant—Definition of Income 1/4/2012 Annual Income Does.Not Include the Following Assets: 1. necessary personal property, except as noted in 9(i). 2. interest in Indian trust lands. 3. assets that are a part of an active business or farming operation. NOTE: Rental properties are considered personal assets held as an investment rather than business assets unless real estate is the applicant's/tenant's main occupation. 4. assets not accessible to the family and which provide no income for the family. 5. vehicles especially equipped for the handicapped. 6. equity in owner-occupied cooperatives and manufactured homes in which the family lives 7. equity in principle residence(home equity). I further certify that I am aware of the following: PENALTY FOR FALSE OR FRAUDULENT STATEMENT, U.S.C. Title 18, Section 1001, provides: "Whoever, in any matter within jurisdiction of any department or agency of the United States knowingly and willfully falsifies...or makes false, fictitious or fraudulent statements or representations...(or makes or uses any false writing or document knowing the same to contain any false, fictitious, or fraudulent statement or entry,) shall be fined not more than$10,000.00 or imprisoned not more than five(5)years,or both". Signature Signature On this day of , , before me, the undersigned, a Notary Public duly commissioned and qualified in and for said county, personally came , to me known to be the person(s) named in and who executed the foregoing instrument, and acknowledged that he executed the same as his voluntary act and deed for the purposes therein stated. Witness my hand and notarial seal the day and year last above written. Notary Public My Commission expires O EQUAL HOUSING OPPORTUNITY EXHIBIT DEFINITION OF PROGRAM INCOME "Program income" means gross income received by the Recipient or a Subrecipient directly generated from the uses of CDBG/HOME/NSP and other federal funds. When such income is generated by an activity that is only partially assisted with CDBG/HOME/NSP and other federal funds, the income shall be prorated to reflect the percentage of CDBG/HOME/NSP and other federal funds used. (1) Program income includes,but is not limited to the following: (i) Proceeds from the disposition by sale or long term lease of real property purchased or improved with CDBG/HOME/NSP and other federal funds; (ii) Proceeds from the disposition of equipment purchased with CDBG/HOME/NSP and other federal funds; (iii) Gross income from the use or rental of real or personal property acquired by the Recipient or a Subrecipient with CDBG/HOME/NSP and other federal funds, less the costs incidental to the generation of such income; • (iv) Gross income from the use or rental of real property owned by the Recipient or a Subrecipient that was constructed or improved with CDBG/HOME/NSP and other federal funds, less the costs incidental to the generation of such income; (v) Payments of principal and interest on loans made using CDBG/HOME/NSP and other federal funds; (vi) Proceeds from the sale of loans made with CDBG/HOME/NSP and other federal funds; (vii) Proceeds from the sale of obligations secured by loans made with CDBG/HOME/NSP and other federal funds; (viii) Interest earned on funds held in a revolving fund account; (ix) Interest earned on program income pending disposition of such income; and (x) Funds collected through special assessments made against properties owned and occupied by households not of low- and.moderate-income, where such assessments are used to recover all or part of the CDBG/HOME/NSP and other federal portion of a public improvement. (2) Program income does not include interest earned (except for interest described in §570.513) on cash advances from the US Treasury. Such interest shall be remitted to HUD for transmittal to the US Treasury and will not be reallocated under Section 106(c) or (d) of the Act. Examples of other receipts that are not considered program income are proceeds from fundraising activities carried out by Subrecipients receiving CDBG/HOME/NSP and other federal assistance; funds collected through special assessments used to recover the non-CDBG/HOME/NSP and other federal portion of a public improvement; and proceeds from the disposition of real property acquired or improved with CDBG/HOME/NSP and other federal funds when such disposition occurs after the applicable time period specified in §570.503(b)(8) for Subrecipient-controlled property or §570.505 for Recipient-controlled property for CDBG program funds and §92.503 for HOME/NSP program funds. (3) Any program income generated by NSP funds through March 31, 2013 shall be used to construct housing units east of 72°d Street affordable to low-, moderate-, and middle-income(LMMI) households. After March 31,2013, all program income generated by NSP funds will be limited to eligible CDBG activities, including the benefit to low- and moderate-income (LMI) (not LMMI) households during the term of this Agreement, the program income shall be returned to the City within thirty(30)days. A • OPPORTUNITY Revised and approved 12/3/2009 CITY OF OMAHA AFFIRMATIVE MARKETING POLICY AND MONITORING PROCEDURES Effective: October 1, 1999 Revised: April 1,2015 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 community media serving minority groups 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 in accordance with provisions of the Uniform Relocation Act; 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 and on all application and documents/forms. • 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. 1 Reviewed and revised 4/1/2015 • Owners shall adopt a fair housing policy. 2. Informing low- and moderate-income persons about available units If the property is not listed with OHA when rehabilitated or constructed units are available for initial occupancy, the owner shall inform the following outreach agencies and/or other agencies of this fact in writing and submit a copy of the letters to the City of Omaha, Planning Department, Housing and Community Development Division, Loan Section, 1819 Farnam Street, Room 1111, Omaha, Nebraska, 68183. Chicano Awareness Center, Inc. Urban League of Nebraska 4821 South 24th Street 3022 North 24th Street Omaha,NE 68107 Omaha,NE 68111 Family Housing Advisory Services Community Alliance 2401 Lake Street 4001 Leavenworth Street Omaha,NE 68111 Omaha,NE 68105 Eastern Nebraska Human Services Heartland Family Service 900 South 74th Plaza, Suite 200 2101 South 42nd Street Omaha,NE 68114 Omaha,NE 68105 Greater Omaha Community Action Heartland Family Service 2406 Fowler Avenue 6720 North 30th Street Omaha,NE 68111 Omaha,NE 68112 Greater Omaha Community Action Heartland Family Service 5002 South 24th Street, Suite 203 2580 South 90th Street Omaha,NE 68111 Omaha,NE 68124 League of Human Dignity Heartland Family Service 5513 Center Street 11212 Davenport Street Omaha,NE 68106 Omaha,NE 68154 Heartland Family Service Nebraska Commission for the Deaf 116 E. Mission Avenue 1313 Farnam on the Mall Bellevue,NE 68005 Omaha,NE 68102 Heartland Family Service Omaha Association for the Blind 302 American Parkway 1024 South 32nd Street Papillion,NE 68046 Omaha,NE 68105 Holy Name Housing Corporation Great Plains Chapter 3014 North 45th Street Paralyzed Veterans of America Omaha,NE 68104 7612 Maple Street Omaha,NE 68134 Mayor's Commission for Citizens with Disabilities 1819 Farnam Street, Room 304 Omaha,NE 68183 • 3. Record Keeping The Owner shall keep records of the following: • Local media advertisements of the vacant unit • Contact dates with outreach agencies and Omaha Housing Authority 2 Reviewed and revised 4/1/2015 • • 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 • U.S. Citizenship Attestation Form for Public Benefit 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. 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 Form for Applicants, attached as Exhibit 1, which includes the name, racial/ethnic characteristics, income and family size for each person responding to the advertisement. e) Prior to the start of the project, the Owner shall meet with each in-place tenants of the occupied units and complete a Tenant Survey, utility allowance, City of Omaha Definition of Income Affidavit, computing annual income form, and U.S. Citizenship Attestation for Public Benefit form. Owner shall submit these properly completed forms to the City, as well as a copy of the dated and signed lease agreement, and retain the original lease for proper record keeping. Forms must be updated on lease anniversary date and submitted to the City during the period of affordability. A copy of each form is attached and marked Exhibit 2. f) 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. 3 Reviewed and revised 4/1/2015 g) After completion of the project, the Owner shall submit a Tenant Survey Form, utility allowance, Computing Annual Income Form, U.S. Attestation of Citizenship for Public Benefit, and other reporting forms as required by the terms of the Agreement, for each occupied unit, as well as a copy of the lease agreement. All documents must be properly executed and dated. h) 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 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. • • 4 Reviewed and revised 4/1/2015 EXHIBIT 1 CITY OF OMAHA DEMOGRAPHICS FORM FOR APPLICANTS Loan No. Date No. of Vacant Units Owner Project Address Person Completing Person's Phone No. This Report Home: Work Race/Ethnicity Family Monthly Of Head of Applicant Size Income Household NOTE: This form is a list of everyone who inquired about renting or purchasing the unit(s). • 5 Reviewed and revised 4/1/2015 AFFIRMATIVE MARKETING POLICY PLAN The Undersigned does/do hereby agree to comply with all terms and conditions of and adopt the City of Omaha's Affirmative Marketing Policy (attached hereto and incorporated herein by this reference as though fully set forth) for the Project located at as approved by the City of Omaha on October 1, 1999 and revised on April 1, 2015. Date: Name of Business or Corporation: (if applicable) By: Signature Printed Name: 6 Reviewed and revised 4/1/2015 • • • • • Pt.230 2 CFR Ch. II (1-1-12 Edition) • 3.Indirect cost allocations not'using rates. §230.5 Purpose. In certain situations, a governmental unit, This part establishes principles for because of the nature of its awards, may be required to develop a cost allocation plan determining costs of grants, contracts that distributes indirect(and,in some cases, and other agreements with non-profit , direct) costs to the specific funding sources, organizations. La these eases, a narrative cost allocation methodology should be developed, docu- §230.10 Scope. • mented, maintained for audit, or submitted, (a) This part does not apply to Col- as appropriate, to the cognizant agency for review,negotiation,and approval. leges and universities which are coy- 4.Appeals.If a.dispute arises in a.,negotia- ered by 2 CFR. part 220 Cost Principles tion of an.indirect cost rate (or other rate) for Educational Institutions (OMB Cir- between the cognizant agency and the gov- cUlar A-21); State, local, and federally- ernmental unit,the dispute shall be resolved recognized Indian tribal governments in accordance with the appeals procedures of which are covered by 2 CFR part 225 the cognizant agency, • Coat Principles for State, Local, and 5.Collection of unallowable costs and erro- Indian'Tribal Governments (OMB Cir- neous payments.Costs specifically identified CUiar:A-8'�;or hospitals. as unallowableand charged to Federal The principles deal with the a-wards eitherdirectly or indirectly will be (b) sub- refunded (including interest chargeable in jeot of cost determination, and make aocordance with applicable Federal agency no attempt to- identify the cir- regulations). cumstances or dictate the extent of 6.OMB assistance.To the extent that prob- agency and non-profit organization lems are encountered among the Federal participation in the financing of a par- agencies and/or governmental units in con- tieular project. Provision for profit or nection with the negotiation and approval other increment above cost is outside process, OMB will lend assistance, as re- the scope of this part. quired, to resolve such problems in a timely manner. §230.15 Policy. PARTS 226-229 [RESERVED] The principles are designed to pro- vide that the Federal Government bear PART 230—COST PRINCIPLES FOR its fair share of costs except where re- NON-PROFIT ORGANIZATIONS stricted or prohibited by law.The prin- ciples do not attempt to prescribe the (OMB CIRCULAR A-122) extent of cost sharing or matching on grants, contracts, or other agreements. Sec. However, such cost sharing or match- 230.5 Purpose. ing shall not be accomplished through 230.10 Scope. arbitrary limitations on individual 230.15 Policy. cost elements by Federal agencies. 230.20 Applicability. 230.25 Definitions §230.20 Applicability. 230.30 OMB responsibilities. 230.35 Federal agency responsibilities. (a.) These principles shall be used by 230.40 Effective date of changes. all Federal agencies in determining the 230.45 Relationship to previous issuance. costs of work performed_by non-profit 2a0.50 Information Contact, organizations under grants, coopera- APPENDIX A TO PArcr 0—C1a z atiti FUR- tivc agreements, cost reimbursement CIPLES contracts,and other contracts in which APPENDIX B TO PART 230—SELECTED ITEMS OF Costs are used in pricing, administra- COST tion,or settlement. All of these instru- APPENDIX C TO PART 230-NON-PROFIT OROA- ments are hereafter referred to as NIZATIONS NOT SUBJECT TO THIS PART awards. The principles do not apply to AUTHORITY: 31 U.S.C. 503; 31 U.S.C, ill/; 41 awards under which an organization is U.S.C.405;Reorganization Plan No.2 of 1970; not required to account to the Federal E.O.11541,35 FR 10737,3 CFR,1966-1970,p.939' Government for actual costs incurred. , SOURCE: 70 FR 51927, Aug. 31, 2005, unless (b) All cost reimbursement sub- otherwise noted. awards (subgrants, subcontracts, etc.) 182 '. �' •: ;.'r .qap . . i.t- • 4 • §'230.50 t',A; OMB Circulars and Guidance. , . u 00 Uo h oSsFO'de* iul cost prig, §230.30 OMB responsibilities. C1pleg attplica'ble to :tha particulari oi- OMB may grant exceptions to the re- it �' ':,ihlp9ti0', . Gflnao'ruecT, 'psi , .:.:,If: :a` quirements of this• part:when permis- {,'anbawatd 3a,cto a,noii:-prafTL orgaii?za sibie under existing law. However, in t s tko pgrL ;hall,, ppi1' if a• the .interest •of. achieving maximum t r 2. 2. :iiubaEward q & coininei ial cirgarilztu uniformity',. exceptions 'will be per- don ;Lase Gast p1 Inciples"applidalale•to; pitted. only in highly unusual cir,. • ..co046.1, lit"cahcerais s!iall ftpp_Z,Y:c1'rf.a curnstances. eubaalprtl is;tea 0110 a or univeraltJ�,: b>ael iil- • P 'Ott:: Part`22'9 shall' n fii* if 1. §230 a5 .Federal agency recp s XiiiiiM d i to a Sr.te ,1Q•tali0T feller. ides db r0c�+ azo(l Indrart tribal govern_ :The/read of each Federal�eiaay tlitjt„ mail ,2 CI't.li "t 22•i s3iall •pi+l.S* :a�vinl�ds snd ti.,minister... S'r`Rat8 �t51. y (c Lxa1�i#ldfl di',omr►e non profit or agi;eemouts subltict 'o tiiisKpart is le-.. gai tiorti„ some •non profit;0rganixsj. sponalhle for xeq'aesting;apprbvkil oii lsiona�abeta•i-'i( Qf t e'ir sizo e,nd llittlre •a itiWcr consulting'with`r3 (aS appli�. oe i§13--'^Ltlo S car ba oon°iderpd t�ti'Ut cable)Car doviatioirs from tie gurdanafi sii)'iii to ceoiliine'c15I C©feei'rr5 for :tit the al)pen(licec to th$rBaxt , iieX'- putpC a of�,..t gpli(,a-liillty of;tort priri forming€hc'a►pplicable<.iitriotiolis speoi- r'iples; Buck .non.profit orgariiwe.tiofls fledin.t ip•apl}.�tllces.ta`41ris•Poire.; sl ll'-oper(ttC ulicler Federal cost pr`in clines; appliciible to tomrerclal Ciro-• §230.40 Effective date of changes . corn. iistis]g d£ these a aixiz41:Ces The-pi0lt&loos of this hart ere oite c •is conita.ined in appendix G to this,Par L tine August•31, 2005 tiiiilameiitatloii th Oer iitiv isatfona:troy b *addo''d.fiom shall beAZO.giirua by inaorpore.t;2 the time'.to time. .0ovisi011s iu :iteeq;i *•,4i'ds ritade ttft r the start of itlierarganftiati`on's•neatrfi8-: 9 §230.25• Definitions. Cal gear. 3�or eili*ting.':awnrls:=the new. (a) Non-profit organisation means piluoipl maSrtie RIiIrllad tfian,org�au= j •any'corporation,trust; association, co- y,Ation'and the aognisant`Fedaxal eS1- c opera.tive,.'or.•other organization which: .ey"agree tarlleri• 'Pl' eutatibn' ai a" (1)• Is 'operated primarily for which: -d,01ay. n lml&mieULttioi of ificlivtdnal entific, educational, 'service, chars prOVlsians,`is a1ao'perx dui. mutu� table,'or,sirnilar..purposes.in.:the public 'agieenient t•betNe`efw- . OgaonizAtioii interest; •`i►na the�tiobiiizant Fyd:_.. .,.' (2) Is not organized primarily fir: §230.45 Relationshitp $o: previous profit; and' (3)Uses its net proceeds to maintain; ar issuance.g• :• ..... Yu tbiti yiaT. piB, improve., and/or expand its.operations:: )+or this purpose, the term "non-profit •vi0us1l yaa issued Ss 0 `Cirrulfi. A'= organization" excludes colleges and 122 Appenth3•;A to-t1?is Part,oonitain \ . . uiii-vei sit'1Cs: liospit to Scats, boil the,g-.0,* ec that wa in Att,'4chiuent A and`f 44i.al1Y recCW ii7ed•1n.Unrt tribal s0vA n l ' o i..*ci ull i g erninei nd:UoaeDu ) ofit or cul&. . diB G04fiie- Bd t- gtunh/,at0na which sie •exclidetlfiroili 411: :tiat ..fiir:. e r t I3 fig7• ovroittlh§ 2o th a :.3.ir1;._in accordance .re ;'itett ofh , the=,DM Gli 23 ,20(c): clai -ud Aopendlx C nolta1i the in- =: (a .FiioraapP ' me n iermtiori LIYtR n Attaciient C seaurl ) the'. a sS : n : vilin lc ia plimiol In (nos-pofl orlr�.iaai;3oiia iot suiuie.c t: o. . • vaffce toet•ieuic•cot for. tlase :itemms, tho.'CSrou)a ::)t,athe 0B 0lur i that are 'desi0 as sa(duirliii prior h)•nW 0MB Cirar A:12 1 ap aril a .0. thie.,pad t :tud its; pp®p- itpLisededcost iirilci a issud yin- �l :os. (Riirsiasl :tlis3ermi�sfaa`.viillie iivd0alaenciesfT non-Trait orgni- • iqsl wuigriti npgro VJrh aapi9toavnal m Spofec nifeiat,d l ia1-: nations. §230:50 Information contact.. .the et coflaf i LL'awaid,o:ppiovidAit the Further information concerning this cost. 0cnstftitt es= itpproval. bf tliati part may be obtained by contacting the cost. ' 188 ; , j . sl I. 4. 1. . i Pt.230, App.A 2 CFR Ch. it (1-1-12 Edition) Office of Federal Financial Manage- costs.The,question of the reasonableness of ment, OMB, Washington, DC 20503, specific costs must be scrutinized with par- telephone(202)395-3993. titular care in connection with organizations or separate divisions thereof which receive 6 APPENDIX A.TO PART 230—GENERAL the ..preponderance of their support from PRINCIPLES awards made by Federal agencies. In deter- g mining the reasonableness of a given cost. GENERAL PRINCIPLES consideration shall be given to: d a. Whether the cost is of a type generally }.. TABLE OF CONTENTS recognized as'ordinary and necessary for the A.Basic Considerations operation of the organization or the perform- 1,Composition of total costs ance of.the award, 2.Factors affecting allowability of costs b.The restraints or requirements imposed 3.Reasonable costs by such factors as generally accepted sound 1 4.Allocable costs business practices, arms length bargaining, 1 5.Applicable credits Federal and.State laws and regulations, and • 6.Advance understandings terms and conditions of the award. t 7.Conditional exemptions c.Whether the individuals concerned acted, B.Direct Costs with prudence in the circumstances, consid- i C.Indirect Costs ering their responsibilities to the organize- D. Allocation of Indirect Costs and Deter- tion, its members, employees, and clients, mination of Indirect Cost Rates the public at large, and the Federal Govern- 1.General ment, 1 2.Simplified allocation method d. Significant deviations from the estab- i 3.Multiple allocation base method lished practices of the organization which 4.Direct allocation method may unjustifiably increase the award costs. • 6.Special indirect cost rates 4. Allocable costs.a. A cost is allocable to { E.Negotiation and Approval of Indirect Cost a particular cost objective, such as a grant, Rates contract, project, service, or other activity, i 1.Definitions in accordance with the relative benefits re- 1. 2.Negotiation and approval of rates ceived.A cost is allocable to a Federal award if it is treated consistently with other costs e GENERAL PRINCIPLES incurred for'the same purpose in like cIi- . cumstances and if it: A._Basic Considerations. (1)Is incurred specifically for the award. 1. Composition of total costs. The total (2)Benefits both the award and other work ,, cost of an award is the sum of the allowable and can be distributed in reasonable.propor- direct and allocable indirect costs less any tion to the benefits received,or /. applicable credits. (3)Is necessary to the overall operation of 2. Factors affecting allowability of costs. the organization,although a direct relation- To be allowable under an award, costs must ship to any particular cost objective cannot meet the following general criteria: be shown. a.Be reasonable for the performance of the b. Any cost allocable to a particular award • award and be allocable thereto under these or other cost objective under these principles C principles. may not be shifted to other Federal awards b. Conform to any•limitations or exclu- to overcome funding deficiencies,or to avoid sions set forth in these principles or in the restrictions imposed by law or by the terms 1. award as to types or amount of cost items. of the award.. c. Be consistent with policies and proce- 5. Applicable credits. a. The term applica- I. dures that apply uniformly to both federally- ble credits refers to those receipts,or reduc- financed and other activities of the organize- tion of expenditures which operate to offset i tion. or reduce expense items that,-are allocable to. d.Be accorded consistent treatment. awards as direct or indirect.costs. Typical e. Be determined in accordance with gen- examples of such transactions are: Purchase erally accepted accounting principles discounts, rebates or allowances, recoveries (GAAP). or indemnities on losses, insurance refunds, i f.Not be included as a cost or used to meet and adjustments of overpayments or erro- cost sharing or matching requirements of nexus charges.To the extent that such cred- any other federally-financed program in ei- its accruing or received by the organization ther the current or a prior period. relate to allowable cost. they shall be cred, g.Be adequately documented. ited to the Federal Government either as a 3.Reasonable costs.A.cost is reasonable if, cost reduction or cash refund, as appro- in its nature or amount, it does not exceed priate. r that which would be incurred by a prudent b.In some instances, the amounts received ., person under the circumstances prevailing at from the Federal Government to finance or- the time the decision was made to incur the ganizational activities or service operations 1 184 . • OMB Circulars and Guidance Pt. 230,App,.A should be.treated as applicable credits. Spe- own written fiscal and administrative re- cifically, the concept of netting such credit quirements for expending and accounting for t: items against related.expenditures should be all funds,which,are consistent with the pro- t. applied by the organization in determining visions of 2 CFR part 225 (OMB Circular A- the,rates or amounts to be charged to Fed- 87),and extend such policies to all subrecipi- eral awards for services rendered whenever ents. These fiscal and administrative re- ' the facilities or other resources used:in pro- quirements must be sufficiently specific to viding such services have been financed di- ensure that: Funds are used in compliance rectly,in whole or in part,by Federal funds. with all applicable Federal statutory and c.For rules covering program income(i.e., regulatory:provisions, costs are reasonable • gross income earned from federally-sup- and necessary for operating these programs,. ported activities) see §215.24 of 2 CFR part and funds are not to be used for general ex- 215 Uniform Administrative Requirements penses required to carry out:other. respon- for Grants and.Agreements•with Institutions sibilities of.a State or its subrecipients. of Higher Education, Hospitals, and Other • Non-Profit Organizations (OMB Circular A- B.Direct-Costs 110). 6. Advance understandings. Under any 1.Direct costs are those that can be identi- r, given award, -the reasonableness and fled specifically with.a particular final cost • allocability of-certain items of costs may be objective, i.e., a particular award, project, , difficult to determine. This is particularly 'service,.or other direct activity of an organi- zation.However,a cost may not be assigned true in connection,with organizations that an award as a direct cost if any other cost receive a preponderance of their support incurred for the same purpose, in like cir- from Federal agencies.In order.to avoid.sub- sequent disallowance or dispute based on cumstance, has been allocated to an award unreasonableness or nonallocability, it is as an indirect cost. Costs identified specifi- cally with awards are direct costs of the often desirable to seek a written.agreement with the cognizant or awarding agency in ad- awards and are to be assigned directly there- vance of.the incurrence of special or unusual to. Costs identified specifically with other costs.The absence of an advance agreement. final cost objectives of the organization are on any element of cost will not, in itself,af- direct costs of those cost objectives and are fect the reasonableness or allocability of not to be assigned to other awards directly that element, or indirectly. 7. Conditional exemptions.a. OMB author- 2. Any direct cost of a minor amount may izes conditional exemption from OMB admin- be treated as an indirect cost for reasons of istrative requirements and cost principles practicality where the accounting treatment for certain Federal programs with statu- for such cost is consistently applied to all torily-authorized consolidated planning and final cost objectives. consolidated administrative funding, that 3.The cost of certain activities are not al- are identified by a Federal agency.and an- loveable as charges to Federal awards (see, proved by the head of the Executive depart- for example, fundraising.costs in paragraph ment or establishment. A Federal agency 17 of Appendix B to this part).However,even shall consult with OMB during its consider- though these costs are unallowable for pux- ation of whether to grant such an exemption. poses of computing charges to Federal b.To promote efficiency in State and local awards, they-nonetheless must be treated as j. program administration, when Federal non- direct costs for purposes of determining indi- entitlement programs with common pur- -reel cost rates and-be allocated their share poses have specific statutorily-authorized of the organization's indirect costs if they consolidated planning and consolidated ad- represent activities which include the sala- ministrative funding and where most of the ries of personnel, occupy space, and benefit State agency's resources come from non- from the organization's indirect costs. Federal sources, Federal agencies may ex= 4. The costs of activities performed pri- empt these covered State-administered,non- marily as a service.to members, clients, or entitlement grant programs from certain the general public when significant and nec- 0MB grants management requirements. The essary to the organization's mission must be exemptions would be from all but the treated as direct costs.whetber or not allow- allocability of costs provisions of Appendix .:able and be allocated an equitable share of A, subsection C.e. of 2 CFR part 225 (0MB indirect costs. Some examples of these types' Circular A-87); Appendix A, Section C.4. of 2 of activities include: CFR part 220 (OMB Circular A-21); Section a. Maintenance-of membership rolls, sub- A.4. of this appendix; and from all of the ad- scriptions, publications, and related func- ministrative requirements provisions of 2 tions. CFR part 215 (OMB Circular A-110) and the ' b. Providing services and information to agencies',grants management common rule. members, legislative or administrative bod- c. f' When a Federal agency provides this ies,or the public. flexibility; as a prerequisite to a State's ex- c. Promotion,lobbying, and other forms of ercising'this option, a State must adopt its public relations. • i5 I 1 .. I i 1: I r i. f. Pt. 230, App.A 2 CFR Ch.II (1-1-12 Edition) `;• . d. Meetings and conferences except those putation of an indirect cost rate may be ac- held to conduct the general administration complished through simplified allocation e of the organization. procedures, as described in subparagraph D.2 ' e. Maintenance, protection, and invest- of this appendix. ment-of special funds not used in operation b.,Where an organization has several.major /: of the organization. functions which benefit from its indirect f. Administration of group benefits on be- costs in varying degrees, allocation of indi- 1 half of members or clients,including life and rect costs may require the accumulation of hospital insurance, annuity or retirement such costs into separate cost groupings i plans,financial aid,etc. which then are allocated individually to ben- i. efiting.functions by means of a base which C.Indirect Costs best measures the relative degree of benefit. I„ 1. Indirect costs are those that have been The indirect costs allocated to each function i. incurred for common or joint objectives and are then distributed'to individual awards and S . cannot. be readily identified with a par- other.activities included in that function by ticular final cost objective. Direct cost of means of: n deterindirect'cost rate(s). minor amounts may be treated as indirect :a. The determination of what constitutes • an organizations, major functions will de- i costs under•the conditions described in sub- pond on its purpose in being; the types of. c. paragraph B.2 of this appendix. After,direct services it renders to the public, its clients, costs have been determined and assigned di- and its members;and the amount of effort it f rectly to awards or other work as appro- devotes to such activities as fundraising, priate, indirect costs are those remaining to II public information and membership activi- be allocated to benefiting cost objectives. A ties. cost may not be allocated to an award as an d. Specific methods for allocating indirect k indirect cost if-any other cost incurred for costs and computing indirect cost rates the same purpose,in like.circumstances,,has along with the'conditions under which each been assigned to an award as a direct cost. method should be used are described in sub- t 2. Because of the diverse characteristics paragraphs D.2 through 5 of this appendix. and accounting practices.of non-profit orga- e.The base period for the allocation of in- ',S' nizations, it is not possible to specify the direct costs is the period in which such costs i types of cost which may be classified as indi- are incurred and accumulated for allocation rect cost in all situations. However, typical to work performed in that period. The base examples of indirect cost for many non-prof- period normally should coincide with the or- it organizations may include depreciation.or ganization's fiscal year but, in any event, use allowances on buildings and equipment, shall be so selected as to avoid inequities in • the costs of operating and maintaining fa- the allocation of the costs. cilities, and general administration and gen- 2. Simplified allocation method. a. Where I eral expenses, such as the salaries and ex- an organization's major functions benefit penses of executive officers, personnel ad- from its indirect costs to approximately the ministration,and accounting. same degree,the allocation of indirect costs 3. Indirect costs shall be classified within may be accomplished by separating the orga- I two broad categories: "Facilities" and "Ad- nizatlon's total costs for the base period as ministration." "Facilities" is defined as de- either direct•or indirect, and dividing the t preciation and use allowances on buildings, total allowable indirect costs(net of applica- l' equipment and capital improvement, inter- ble credits) by an equitable distribution est on debt associated with certain buildings, base.The result of this process is an indirect t equipment and capital improvements, and cost rate which is used to distribute indirect " operations and maintenance expenses. "Ad- costs to individual awards. The rate should i • ministration" Is defined asgeneral adminis- y be expressed as-the percentage which the 4. tration and general expenses such as the di- total 'amount of allowable indirect costs E rector's office,accounting,personnel,library bears to the base selected: This method expenses and all other types of expenditures should also be used where an organization not listed specifically under one of the sub- has only one major function encompassing a F categories of"Facilities"(including cross al- number of individual projects or activities, =locations from other pools, where applica- and may be used where the level of Federal ble).See indirect cost rate reporting require- awards to an. organization is relatively • I- ments in subparagraphs D,2.e and D.3.g of small. this appendix. b. Both the direct costs and the indirect E D.Allocation of Indirect Costs and costs shall exclude capital expenditures and Determination of Indirect Cost Rates unallowable costs. However, unallowable 6 posts which represent activities must be in- 1. General.a.Where a non-profit organiza- eluded in the direct costs under the condi- tion has only one major function, or where tions described in subparagraph B.3 of this. all its major functions benefit from its indi- appendix. rect costs to approximately the same degree. o. The distribution base may be total di- the allocation of indirect coats and the coin- rect costs (excluding capital expenditures 186 l , tr j i }. . I ) 4. : OMB Circulars and Guidance Pt.230,App.A and other distorting items, suoh as major that have been incurred for the.administra- subeontracts or subgrants), direct salaries ton, operation, maintenance, preservation, and wages, or other base which results in an and protection of the organization's phyysical. equitable distribution. The distribution base plant. They include expenses normally in- t shall generally exclude participant:support curred for such items as,Janitorial and util- l costs as defined in paragraph 32 of Appendix' ity'services; repairs and ordinary or normal B. alterations.of buildings,furniture and equip- • d. Except where a special rate(s) is re- meet; care of grounds; maintenance and op- quired in accordance with subparagraph 5 of eration of buildings and other plant facili- this appendix, the indirect cost rate devel- ties; security; earthquake and disaster pre- oped under the above principles is applicable pareclness; environmental safety; hazardous f. to all awards at the organization.If a special waste disposal;.property, liability and other rate(s)is required,appropriate modifications insurance relating to property; space and f; shall be made in order to develop the special capital leasing; facility planning and man- 5 rate(s). agenient;:and, central receiving. The oper- e. For an organization that receives more ation and maintenance expenses category 1. than$10 million in Federal funding'of direct shall also include 'its allocable share of costs In a fiscal year,a breakout of the indi- fringe benefit costs,depreciation:and use al- k rect cost component into two broad cat- lowances,and interest costs.., ' egories,Facilities and Administration as de- (4)General administration and general ex-, fined in subparagraph C.3 of this appendix,is penses. (a)The expenses under this heading required.The rate in each case shall'be stet- are those that have been incurred for the I ed as the percentage which the amount of overall general executive and administrative the particular indirect cost category (i.e., offices of the organization and other. ex- Facilities or Administration) is of the dis- penses of a general nature'which do not re- E. tribution base identified with that category. late solely to any major function of the orga- { 3.Multiple allocation base method. nization.This category shall_also include its. a. General. Where an organization's indi- allocable share of'fringe benefit costs, over- rect costs benefit its major functions in ation and maintenance expense,depreciation 1' varying degrees,indirect costs shall he acou- and use allowances, and interest costs. Ex- mulated into separate cost groupings, as de- amples of this category include central of- scribed in subparagraph D.3.h of this appen- fines,such as the director's office,the office dix. Each grouping,shall then be.allocated of- finance, business services, budget and individually to benefiting functions by planning,personnel,safety and risk manage- } means of a base which best measures the rel- meet, general counsel, management infor- ative t benefits, The default allocation bases mation systems,and library costs. by cost pool are described in subparagraph (b) In developing this cost pool, special D.3.c of this appendix. care should be exercised to ensure that costs b. Identification of indirect costs. Cost incurred for the same purpose in like cir- i groupings shall be established so as to per- cumstances are treated consistently as ei- 1. mit the allocation of each grouping on the ther direct or indirect costs. For example, basis of benefits provided to the major func- salaries of technical staff, project supplies, tions. Each grouping shall constitute a pool project publication, telephone toll charges, I of expenses that are of like character in computer costs, travel costs,and specialized a. terms of functions they benefit and in terms services costs shall be treated.as direct costs i of the allocation base which best measures wherever identifiable. to a particular pro- ; the relative benefits provided to each func- gram.The salaries and wages of administra i tion. The groupings are classified within the tive and pooled clerical staff should nor- two broad categories: "Facilities" and"Ad- many be treated as indirect costs. Direct ministration," as described in subparagraph charging of these costs may be appropriate i C.3 of this appendix. The indirect cost pools where a major project or activity explicitly i' are defined as follows: requires and budgets for administrative or i (1) Depreciation and use allowances. The clerical services and other individuals in- iexpenses under this heading are the portion volved can be identified with the program or of the costs of the organization's buildings, activity. Items such as office supplies, post- , capital improvements to land and buildings, age, local telephone costs, periodicals and and equipment which are computed in ac- memberships should normally be treated as i cordance with paragraph 11 of Appendix B to; indirect costa, this part ("Depreciation and use allow- c,Allocation bases.Actual conditions shall antes'), be taken into account in selecting the base i (2) Interest. Interest on debt associated to be used in allocating the expenses in each with certain buildings, equipment and cap- grouping to benefiting functions. The essen- ital improvements are computed in accord- tial consideration in selecting a method or a ance with,paragraph 23 of Appendix B to this base is that it is the one best suited for as- part("Interest"). signing the.pool of costs to cost objectives in ; (3) Operation and maintenance expenses. accordance with benefits derived;a traceable. The expenses under this heading are those cause and effect relationship; or logic and 1. 187 , 1 B [: Pt. 230,App.A 2.CFR Ch. II (1-1-12 Edition) 1. reason, where neither the cause nor the ef- allocated in the same manner as the depre- fect of the relationship is determinable. elation and use allowances. When an allocation can be made by assign- (4) General administration and general ex- ; ment of a cost grouping directly to the font- penses. General administration and general lion benefited, the allocation shall be made expenses shall be allocated to benefiting i in that manner. When the expenses in a cost functions based on modified total direct grouping are more general in nature, the al- costs (MTDC), as described in subparagraph ` location shall be made through the use of a D.3.f of this appendix.The expenses included selected base which produces results that are in this category.could be grouped first ac- 1 equitable to both the Federal Government cording to major functions of the orga'niza- and the organization. The distribution shall • tion to which they render services or provide be made -in'accordance with the bases de- benefits. The aggregate expenses of each scribed herein unless it can be demonstrated. i that the use of a different base would result group shall the be allocated to benefiting e in a more equitable allocation of the costs, functions based.on MTDC: • 1 or that a more readily available base would d. Order of distribution. (1) Indirect cost. 1 not increase the costs charged to sponsored categories consisting of depreciation and use awards, The results of special coat studies allowances, interest, operation and mainte- f (such as an engineering utility study) shall nanoe, and general administration and gen- not be used to determine and allocate the in- eral expenses-shall be allocated in that order direct costs to sponsored awards. to the remaining indirect cost categories as (1)Depreciation and use allowances.Depre- well as to the major funotions of the organi- i elation and use allowances expenses shall be zation. Other cost categories could be alto- 1 • allocated in the following manner: cated in the order determined to be most ap- tt (a) Depreciation or use allowances on propriate by the organization.When cross al- buildings used exclusively in the conduct of location of-costs is made as provided in sub- a single function, and on capital improve- paragraph D.3.d.(2) of this appendix, this ► ments and equipment used in such buildings, order of allocation does not-apply. shall be assigned to that function. (2)Normally,an indirect cost category will (b) Depreciation or use allowances on be considered closed once it has been allo- buildings used for more than one function, sated to other cost objectives, and costs and on capital improvements and equipment shall not be subsequently allocated to it. used in such buildings, shall be allocated to However,a cross allocation of costs between the individual functions performed in each two or more indirect costs categories could building on the basis of usable square feet of be used if such allocation will result in a space,excluding common areas,such as hall- more equitable allocation of costs.If a cross ways,stairwells,and restroons. allocation is used, an appropriate modifica- (c) Depreciation or use allowances on tion to the composition of the indirect cost buildings, capital improvements and equip- categories is required, 3 ment related space (e.g., individual rooms, e. Application of indirect cost rate or tt and laboratories) used jointly by more than rates. Except where a special indirect cost one function,shall (as determined by_the users of rate(s) is required in accordance with sub- the space) sh be treated as follows. The paragraph D.5 of this appendix, the separate cost of each jointly used unit of space shall be allocated to the benefiting functions on groupings of indirect costs allocated to each 1 the basis of either the employees and other major function shall be aggregated and users on a full-time equivalent (FTE) basis treated as a common,pool for that function. or salaries and wages of those individual The costs in the common.,pool shall then be functions benefiting from the use of that distributed to individual awards included in space; or organization-wide employee FTEs that function by use of a single indirect cost or salaries and wages applicable to the bene- rate_ fiting functions of the organization. f.Distribution basis.Indirect costs shall be (d)Depreciation or use allowances on cer- distributed to applicable sponsored. awards: tarn capital improvements to land, such as and other benefiting activities within each paved parking areas, fences, sidewalks, and major function on the basis of MTDC.MTDC the like, not included in the cost of build- consists of all salaries and wages,fringe ben- ings,shall be allocated to user categories on efits,materials and supplies,services,travel, a FTE basis and distributed to major func- and subgrants.and subcontracts up to the tons in proportion to the salaries and wages first$25,000 of each subgrant or subcontract of all employees applicable to the functions. (regardless of the period covered by the . (2) Interest. Interest costs shall be allo- subgrant or subcontract).Equipment,capital cated in the same manner as the deprecia- expenditures,charges for patient care,rental lion or use allowances on the buildings, costs and the portion in excess of $25,000 equipment and capital equipments to which shall be excluded. from MTDC. Participant the interest relates. support costs shall generally be excluded i (3) Operation and maintenance expenses. from MTDC. Other items may only be ex- Operation and maintenance expenses shall be eluded when the Federal cost cognizant • . 1 i I OMB Circulars and Guidance Pt, 230,App.A ; agency determines that an exclusion is nec- resources employed,the scientific disciplines " essary to avoid a serious inequity in the dis- or technical skills involved, the organize- i tribution of indirect costs. Monal arrangements used, or any combine- g. Individual Rate Components. An indi- tion thereof: When a particular segment of rest cost rate shall be determined for each work is performed in an environment which separate indirect cost pool. developed. The appears to generate.a significantly different rate in each case shall be stated as the per- level of indirect costs,,provisions should be centage which the amount of the particular made.for a separate indirect cost.pool appli- indirect coat pool,is of the distribution base cable to such work..The separate indirect identified with that pool. Each indirect cost cost,.pool should be developed during the I rate negotiation or determination agreement course of the.regular allocation process, and r shall include development of the rate for the separate indirect cost rate resulting each indirect cost pool as well.as the overall therefrom should be used,,provided it is de- indirect cost- rate. The indirect cost pools termined that the rate differs significantly shall be classified within two broad cat,. from that which would have been obtained - [. egories: "Facilities" and "Administration," under subparagraphs D.2,3,and 4 of this ap- as described.in subparagraph C.3 of this ap- pendix,and the volume of work to which the ,i pendix;. rate-would'apply is maternal, 4;Direct allocation method. a. Some non- profit'organizations treat all costs as direct E.Negotiation and Approval of Indirect Cost i' costs except-general administration•and gen- Rates eral expenses.These organizations generally 1, Definitions. As used in this section, the i separate their costs into three basic cat- following terms have the meanings set forth egories: General administration and'general below: expenses, fundraising,and other direct font a. Cognizant agency means the Federal tions (including projects performed under • agency responsible for negotiating and ap- " • Federal rentals Joint costs,such as depre proving indirect'cost rates for a non-profit t elation, costs, operation and mainte- nance organization on behalf of all Federal agen- i.nonce of facilities, telephone expenses,:and I'. the like are prorated individually as direct ties. costs to each category and.to each award or b. Predetermined rate means an indirect other activity using.a base most appropriate cost rate,applicable to a specified current or to the particular cost being prorated. future period, usually the•organization's fis- b:This method is acceptable,provided each cal year.The rate is based on an estimate of ' joint cost is prorated using a base which ac- the costs to be incurred during the period.A curately measures the benefits provided to predetermined rate is not subject to adjust- each award or other activity.The"bases must ment. • be established in accordance with reasonable c. Fixed rate means an indirect cost rate criteria, and-be supported by current data; which has the same characteristics as a pre- This method is compatible with the Stand- determined rate, except that the difference ards of Accounting and.Financial Reporting between the estimated costs and the actual for Voluntary Health and Welfare Organize- costs of the period covered by the rate is car- tions issued jointly by the National Health nod forward as,an adjustment to the rate Council,Inc., the National Assembly'of Vol- computation of a subsequent period. k. untary Health and Social Welfare Organize- d.`Final rate means'an indirect cost rate Mons,and the United Way of America, applicable to a specified past period which is e c. Under this method, indirect costs con- based on the actual costs of the period. A sist exclusively of general administration final rate is not subject to adjustment. and general expenses. In all other respects, e. Provisional rate or billing rate means a the organization's indirect cost rates shall temporary indirect cost rate applicable to a j 1 be computed in the same manner as that de- specified period which is used for funding,in- • scribed in subparagraph D.2 of this appendix. terim reimbursement,and reporting indirect 5. Special indirect cost.rates. In some in, costs on awards pending the establishment of stances,a single indirect cost rate for all ac- a final rate for the period. tivities of an organization or for each major f. Indirect cost proposal means the docu- function of the organization may not be ap- mentation prepared by an organization to propriate, since it'would not take into ac- substantiate its claim for the reimbursement :` count those different factors which may sub- of indirect costs. This proposal provides the I stantially affect the indirect costs applicable basis for the review and negotiation leading ' to a particular segment of•work. For this to the establishment of an organization's in purpose, a particular segment of work.may direct cost rate. he that performed under a single award or it g.Cost objective means a function,organi- may consist of work under a group of awards zational subdivision, contract, grant, or ,, performed in a common environment. These other work unit for which cost data are de- , factors may include the physical location of sired and for which provision is made to ac- the work,the level of administrative support cumulate and measure the cost of processes; required,the nature of the facilities or other projects,.jobs and capitalized projects," 189 1 1 i. i i Pt.230,App. B 2 CFR Ch. 1I (1-1-12 Edition) i 2.Negotiation and approval of rates.a.Un- dispute shall be resolved in accordance with i{ less different arrangements are agreed to by the appeals procedures of the cognizant' a the agencies concerned, the Federal agency agency. . with the largest dollar value of awards with i.To the extent that problems are encoun- an organization will be designated as the tered among the Federal agencies in connec- k.. cognizant agency for the negotiation and ap- tion with the negotiation and approval proc- 3 proval of the indirect cost rates and, where ess, OMB will lend assistance as required to #1 necessary, other rates such as fringe benefit resolve such problems in a timely manner. and computer charge-out rates. Once an agency is assigned cognizance for a par_' APPENDIX B TO PART 230-SELECTED titular non-profit organization, the assign- ITEMS OF COST j .ment will not be changed unless there is a. SELECTED ITEMS OFi_COST major long-term shift in the dollar volume of " the Federal awards to the organization. All 1 concerned Federal agencies shall be given TABLE OF CONTENT$, t the opportunity to participate in the nego- j.,Advertising,and public relations costs tiation process but, after a rate has been 2.Advisory councils agreed upon, it will be accepted by all Fed- 3.Alcoholic beverages i oral agencies. When a Federal agency has 4.Audit costs and related services reason to believe that,special operating fac- 5.Bad debts tors affecting..its awards necessitate special 6.Bonding-costs indirect cost rates in accordance with sub- 7.Communication costs paragraph U.S of this appendix, it will, prior 8.Compensation for personal,services to the time the rates are negotiated, notify 9.Contingency provisions - , the cognizant agency. 10.Defense and prosecution of criminal and ., b. A non-profit organization which has not civil proceedings, claims, appeals and previously established an indirect cost rate patent infringement with a Federal agency shall submit its ins- 11.Depreciation and use allowances ' tial indirect cost proposal immediately after 12.Donations and contributions the organization is advised that an award 13. Employee morale, health, and welfare 5 will be made and, in no event, later than costs three months after the effective date of the. 14.Entertainment costs . award. 15. Equipment and other capital expends- t c. Organizations that have previously es- tures I tablished indirect cost rates must submit a 16.Fines and penalties new indirect cost proposal to the cognizant 17. Fund raising and investment Manage- S agency within six months after the close of ment costs. I each fiscal year, 18.Gains and losses on depreciable assets. 4 d.A predetermined rate may be negotiated 19.Goods or services for personal use for use on awards where there is reasonable 20.Housing and personal living expenses- , assurance,based on past experience and.roll- 21.Idle facilities and idle capacity 4 able.;projection of the organization's costs, . 22.Insurance and indemnification that the rate is not likely to exceed a.rate 23.Interest • based on the organization's actual costs. 24.Labor relations costs , e. Fixed rates may be negotiated where 25.Lobbying . predetermined rates are not considered ap- 26. Losses on other sponsored agreements propriate.A fixed rate,however,shall not be or contracts negotiated if all or a substantial portion of '27.Maintenance and repair costs the organization's awards are expected to ex- 28.Materials and supplies costs pire before the carry-forward adjustment can 29.Meetings and conferences be made;the mix of Federal and non-Federal 30.Memberships,subscriptions, and profes- work at the organization is too erratic to sional activity costs permit an equitable carry-forward adjust- 31.Organization costs ment; or the organization's operations.flue- 32.Page charges in professional journals. tuate significantly from year to year. 33.Participant support costs f.Provisional and final rates shall be nego- '34.Patent costs tiated where neither predetermined nor fixed 35.Plant and homeland security costs rates are appropriate. 36.Pre-agreement costs g.The results of each negotiation shall be 37.Professional services costs formalized in a written agreement between 38.Publication and printing costs the cognizant agency and the non-profit or- 39.Rearrangement and alteration costs ganization. The cognizant agency shall dis- 40.Reconversion costs tribute copies of the agreement to all con- 41.Recruiting costs corned Federal agencies. 42.Relocation costs h.If a dispute arises in a negotiation of an 43.Rental costs of buildings and equipment• indirect cost rate between the cognizant 44.Royalties and other costs for use of pat- agency and the non-profit organization, the ents and copyrights . .100 - • kt..,,, • ry_ , L. 1. 1:. OMB Circulars and Guidance Pt.230,App. B 45.Selling and marketing are limited to communication and liaison 46,Specialized service facilities. necessary'keep the public informed on mat- 47.Taxes ters of public concern, such as notices of t. 48. Termination. costs applicable to spon- Federal contract/grant. awards; financial . sored'agreements matters,etc. 49.Training costs e.Costs identified in subparagraphs a and d 50.Transportation costs if incurred for more than one,Federal award 61.Travel costs or,for both sponsored work and other work of 52.Trustees the non-profit organization, are allowable to APPENDIX B TO PART230—SELECTED ITEMS OF the extent that the principles inAppendix A to this..part, paragrapI B, ('I)irect Costs") 1' CosT ,.and C.("Indirect.Costs")are observed. Paragraphs 1 through 62 of this appendix f. Unallowable.advertising and public rela- ET- provide principles to be applied in estab- tions costs include the following: Hailing the allowability of certain items.of (1) All advertising and public relations I Cost.These principles apply whether a cost is posts other than as specified in subpara- treated as direct or indirect Failure to men- graphs c,d,and e; ^ f lion,a.pai:ticular item of cost is not intended (2) Costs of meetings, conventions; con- to imply that it is unallowable; rather, de- vocations, or other events related to other termination as to allowability in each case activities of the non-profit organization, in- should be based on the treatment or prin- eluding:: a, ciples provided for similar or related items (a) Costs of displays, demonstrations,aigi g:•, • of cost. exhibits; 1.Advertising and public relations costs.a. (b) Costs of meeting rooms, hospitality The term advertising costs means the costs suites, and other special facilities used in i. of advertising media and corollary adminis- conjunction with shows and other special , trative costs. Advertising media include events;and • magazines,newspapers,radio and television, (c) Salaries and wages of employees en- l direct mail, exhibits,electronic or computer gaged in setting up and displaying exhibits, transmittals,and the like. making demonstrations, and providing.brief b.The term public relations includes corn- .rigs`. munity relations•and means those activities (3).Costs of promotional items and memo- -_ dedicated to maintaining the image of the rabili•a i, including models, gifts, and sou- non-profit organization or maintaining•or yeiiirs; promoting understanding and favorable rela- tions with the community or public at large (4)Costs of advertising and public relations or any segment of the public. designed solely to promote the non-profit or- t c.The only allowable advertising costs are ganization. those which are solely for: 2.Advisory Councils.Costs incurred by ad-. i (1) The recruitment of personnel required visory councils or committees are,allowable i for the performance by the non-profit organi- as a direct cost where authorized by the Fed- zation of obligations arising.under a Federal oral awarding agency or as an indirect cost award (See also paragraph 41, Recruiting where allocable to Federal awards. costs, and paragraph 42,•Relocation costs,of 3. Alcoholic beverages. Costs of alcoholic this appendix); beverages are unallowable. (2)The procurement of goods and services 4. Audit costs and related services. a. The. for the performance of a Federal award; coats of audits required by,and.performed in I (3)The disposal of scrap or surplus mate- accordance with, the Single Audit Act, as rials acquired in the performance of a Fed- implemented by Circular A-133, "Audits of f eral award except when non-profit organiza- States, Local Governments, and Non-Profit tions are reimbursed for disposal costs at a Organizations" are allowable. Also see 31 predetermined amount;or U.S.C.7505(b)and section 230("Audit Costs") (4) Other specific purposes necessary to- of Circular A-133. meet the requirements of the Federal award. b.. Other audit costs.are allowable if in- dThe only allowable public relations costs eluded in.an indirect cost rate proposal,.or if' Are.: specifically approved by the awarding agen- (1) Costs specifically required by the Fed- cy as a directcost to an award. oral award; c. The cost of agreed-upon procedures en- (2)Costs of communicating with thepublic .gagements to monitor subrecipients who are and press pertaining to specific activities or exempted from.A-133 under section 200(d)are t accomplishments which result from perform- allowable,subject to the conditions listed in ance of Federal awards(these costs are con- A 133,section'230(b)(2). j sidered necessary as.part:01 the outreach ef- 5. Bad debts. Bad debts, including losses } fort for the Federal award);or. (whether actual or estimated) arising from I (3)Costs of conducting general liaison with tmcollectible accounts and other claims, re news media and government public relations lated collection costs, and' related legal i. officers, to the extent that such activities: costs,are unallowable, 't 191 I F [ ' • Pt, 230,App.B 2 CFR Ch. i1 (1-1-12 Edition) • d'iEoiidliig:m 'a:'• 8rinding.costa+;arise: d. Special considerations in determining tciiiiii.the.Federai Govoritment'rcqulros,"es- allowability. Certain conditions require spa- .aura0Ct<sgaipirit,finanbtat lass to itself`;,or; dal consideration and possible limitations in at�liai .by�'reasoti of'.tliu_:aeli3Or-AO:ault`of'tlio determining oosts .under Federal awards non profit brga.nl2at'fDn. They,erib-e alto-in. where amounts or types of compensation ap- lnetanees Where the non profit orgrtliJztttl'+n .pear,unreasonable. Among such conditions •lrequiriSstnifiar:Us4ur6nce ribluiltid•tire.iira1i are the fcillbWdlagi ; iondg'ci bidip$rformssnCe. itient ndvanrai ,C1,1 on Compensati to members of.non profit , p yrnet<inf'rinKamel anti ide.lf , bonds. organiaetfous,t iatees ators c�ociatoa• h costs at':bonding regilir+etl pti saanit to offices or•th'f iniiediate'fa her leg;ttw,t. the terms of the award are allowable. peterili nation . holild be lnado dint siloh c. Costs of bonding required by the non- epznpnllsati 1.4i tleasoflable. ie'i'.the tiotaal proflt'organization in the general conduct of personal serv1ct i;rent or0d iv ther than.a ilL'1- its operations are allowable to the extent tribtitiCh,of eariiin6'e iu exeest}Pf COSts' that such bonding -is in accordance with ' '(21 An,y thaoge in an of at1O4 8 t01i- sound business practice and the rates and pensatdon=liolioy'Cesultinin� substnntlitl • premiums,are reasonable under the air- inlcrease;fn tho org iixa.ti0n'e iovot of cofit- • otinls*090 pensation; particularly when it was•concur- ?'cainntunicabian cost:, Coats'incurred for rent.with an.increase in the ratio of Federal telephone Btorvtccs, local and icing4let4kneo awards.to other activities of the organiza- 'te eplione.call to 10,1m, P ratngo 'Hies- . :Yon or any change in the treatment of al- sen..fi electrcnic,ar,4iiMP-1ltsr:tramm�iittal.•• d lowability_of specific types of compensation services and.the litre hre allowable ire to ehangenin ly ederel}9oltti j 8. CorPBrisation for.%ponsorial setviae a.., . .e Unallowable costs{Gexth•w1ilTcb. .e final- j DbfunititIn Qoinponsatian Soy Personal sere 1Awablo udder otiiet pas' Dlit of this gli 1 ices ",intluAes all cornpbnsatio t paid oar ,penrlix ,shnlll not:ba iliowt►b1e tiiicsar this:. S.ont ly ,or;,accrued b `the:organizatlon for '1�Tagraph seleI on the 1raM that.they•cm?i-' i sei•vices of'emplayees;.rondnrcd riming-the ttttute•pailional.0Mllensatibii . pe'riad of bhe awaivl(exoapt ad;otherifiae pro-• f ©vdrtima a;raps`'ahlt„ anti multi-, 1 vlded 9fi<stiliparagrAiih B It of this appolidixl .6hift Premiums. ll remItizits for .overtlnse: it•ltinlud Unit ls'1uot 1,iriiited to, isallirioe extra pa-•shifts iuidhnalti-.shift;work aie•al vittgess dlraotors and executive Comtiiitttie' loWBhle:olily�'with the priorstppi'nval (if.tha mbsr's Then,incentive away'd;,fllaign!bene awarding agency except: fil4s ,pension plant'coats atieiiifCee-aor`off- (1) 'When necessary to cope with emer- •site ppiy incentive paY,location alloWences, gencies, such as those resulting from acci- •hardship Pi'y:.and•«fat'of•living differentials, dents, natural disasters, breakdowns of li:s.Allo)ti(abilttY...: ',Xpe pit 4.5',60ior.WisO nPe'; equipment, or.occasional operational bottle- c.ifically,,provided :ill this''ip.'t'tgv`ap 1. the, necks of s sporadic rintuise tsbiita;ot such cos penaation.are allowable.:to (2)'W. iien einploye4.s,are performing indi- t)io oxtsnt ttiiats rect functions,such as administration,main- (U.Total s:.cenip fPsatiof•to,individual.cm' tenance,or accounting. 3tlosoc�':it soaaonable,foi the ssdrt'ioeh i'dn- (3)In the performance of tests, laboratory •der'od:andconforms to the ystahlishefi:P011ay procedures, or other similar operations •qf,•the,;bisianlzRtiJt�,.coARtatunt1Y'tliplied is which are continuous in nature and cannot •both:Feder'nl fnc.non:F`iideI'ai u=°tivi d reasonably be interrupted or otherwise corn- (2) Che.L'gea.,•to;'e,warde.,,Wl'tther trea.tod:as, pleted• • din cot nr.indirect costa are•determineL'and (9)When lower overall cost to the Federal supported as-nsquired'3n tbie patC1 r ilh.,, Government will result. . e:-7teasoliablenneti`'(1)VThen:'.the orgunls(1 g. Fringe benefits. (1) Fringe benefits in tine is predoinillairtly engaged in actinides the form of regular compensation paid to ;Aker than those sponsored lid ,the,Ferlei'M employees during periods of authorized ab- 4 Government,compensation for employees on sences from the job, such as vacation leave,. i federally-sponsored work will be considered sick leave, military leave, and the like, are 111 reasonable.to the extent.that it is consistent allowable, provided such costa are absorbed with that,paid,for similar Work in the orga- by all organization activities in proportion • 1tilatlbn*:uth er5aptivities• to the relative amount•of time,or effort actu- (2)'Wheii,the'.di'ganizabton is prodominbntly ally devoted to each. engaged in;focorallyaiponsnred litttvitiea and (2)Fringe benefits in.the form of employer. in':.cater s where he kind of':enlployees e:- contributions or expenses for social security, qulcel fo1' the l'ede1al activities Jilt not:' employee insurance, rkmen's sts (see•nsasub- found fn the''organisntlon a other activities. tion insurance, pension lion compansatlen for;.omployctis on•federally:- paragraph 8.h of-this appendix),and the like, •sponsored•work will l7d aonaidered roasonahl:e are allowable, provided such benefits are • to.the extant t 14.:it ls'tbraiiaratile to hint granted in accordance with established writ- paid,tot similar:work in.tbe-labor-markets'.iic'. ten organization policies. Such benefits which the organization..croiitpeteas.Yor 'the.. whether costs, treated d as be distributed irect costs o or pa s direct ct kind of employees involved. 192 • • C: .ln . g i S i 1 s i OMB Circulars and Guidance Pt.23.0, App. B - • awards and other activities in a manner con- each quarter,of the year to,which such costs . sistent with the pattern of benefits accruing are assignable are unallowable. y to the individuals or group of employees (2) Pension plan termination insurance 't_ whose salaries and wages are chargeable to premiums paid pursuant to the Employee - such awards and other activities. Retirement Income Security Act(ERISA)of (3)(a)Provisions for a reserve under a self- 1974(Pub. L. 93-406)are allowable.Late pay- • insurance program for unemployment corn- ment charges on such premiums are unallow- a pensation or workers' oompensation are al- able. lowable to the extent that the provisions (3) Excise taxes on accumulated funding ; represent.reasonable estimates of'the liabil; deficiencies and other penalties imposed ities for such compensation,and the types of under ERISA are unallowable. I' coverage, extent of coverage, and rates and 1. Incentive compensation. Incentive corn- premiums would have been allowable had in- pensation to employees based on cost reduc- : surance been purchased to cover the risks. tion, or efficient performance, suggestion However, provisions for self-insured liabil- awards, safety awards, etc., are allowable to ities which do not become payable for more the extent that the overall compensation is than one year after the provision is made determined to be reasonable and such.costs shall not exceed the present.value of the lip are paid. or.aogrued pursuant to an:.agree- ability. ment:entered into in good faith between the (b) Where an organization follows a- con- organization and the employees before the • sistent policy of expensing actual payments services were rendered,or.pursuant to an es- to, or on behalf of, employees or former em- tablished•plan followed by-the organization • ployees for unemployment compensation nr so consistently..as to imply,. in.effect, an workers' compensation, such payments axe agreement to make such payment. allowable in the year of payment with'the k. Severance pay. (1) Severance pay, also prior approval of the awarding agency,.pro- commonly referred.to as dismissal wages, is vided they are allocated to all activities of a payment in addition to regular salaries and the organization. wages,. by organizations to workers whose 1 (4)Costs of insurance on the lives of trust- employment is being terminated. Costs of i ees, officers, or other employees holding po- severance pay are allowable only to the ex- ' sitions of similar responsibility are allow- tent that in each case,it is required by: able only to the extent that the insurance (a)Law •° • represents additional compensation. The (b)Employer-employee agreement i' costs of such insurance when the organize- (c)Established,policy that constitutes,in ef- l tion is named as beneficiary are unallowable. feet, an implied agreement on the organi- I h. Organization-furnished automobiles. zation's part,or 1: That portion of the cost of organization-fur- (d) Circumstances of the particular employ- i niched automobiles.that relates to personal meat. t. use by employees (including transportation (2)Costs of severance payments are divided 1 to and from work) is unallowable as fringe into two categories as follows: ' bonefit or indirect costs regardless of wheth- (a)Actual normal turnover severance.pay- { er the cost is reported as taxable income to ments shall be allocated to all activities;or, the employees. These costs are allowable as where the organization provides for a reserve t, direct' costs to sponsored award when nec- for normal severances, such method will be 1 essary for the performance of the sponsored acceptable if the charge to current oper- award and approved by awarding agencies, ations is reasonable in light of payments ac- i.Pension plan costs. (1)Costs of the orga- tually made for normal severances over a nization's pension plan which are incurred in representative past period, and if amounts accordance with the established policies of charged are allocated to all activities of the the organization are allowable,provided: organization. j (a) Such policies meet the test of reason- (b) Abnormal or mass severance pay is of ableness; such a Conjectural nature that measurement i. (b)The methods of cost allocation are not of costs by means of an accrual will not I discriminatory; achieve equity to both parties.Thus, accru- (c)The cost assigned to each fiscal.year is• als for this purpose are not allowable. How- determined in accordance with generally ac- ever, the Federal Government recognizes its cepted accounting principles(GAAPP),.as pre- obligation to participate,to the extent of its scribed in Accounting Principles Board Opin- fair share,'in any specific payment.Thus,al- ion.Xo.8 issued by the American Institute of lowability will be'considered on a case-by- Certified Public Accountants;and case basis in the.event or occurrence. (d)The costs assigned to a,given_fiscal year (c)Costs incurred in certain'severance pay are funded for all plan participants within packages (commonly known as "a golden six months after the end of that year. How- parachute" payment) which are in an ever, increases to normal and past service amount in excess of the normal severance pension costs caused by a delay in funding pay paid by the organization to an employee the actuarial liability beyond 30 days after upon termination of employment and are • f 193: I. i r-,- 1 I. . M t Pt.230, App. B 2 CFR Ch. 1I (1-1-12 Edition) 1' paid to the employee contingent upon a of the activities performed.hy the employee, change in management control over;,or own- that the distribution of activity represents a ership of, the organization's assets are unal- reasonable estimate of the actual work per- • lowable. formed by the employee during the periods #1 (d)Severance payments to foreign nation- covered by the reports. I ale employed by the organization outside the (d) The reports must be prepared at least 3: United States,to the extent that the amount monthly and must coincide with one or more II. exceeds the customary or prevailing prao- pay periods. tices for the organization in the United (3) Charges.for the salaries and wages of States are unallowable, unless they are nec- nonprofessional employees, in addition to essary for the performance of Federal pro- the supporting documentation described in grams and approved by awarding agencies. subparagraphs (1) and (2), must also be supt. - (e) Severance payments to foreign nation- ported by records indicating the total num- als employed by the organization outside the ber of hours worked each day maintained in '- United States due to the termination of the conformance with Department of Labor reg- i foreign national as a result of the closing of, ulations implementing: the .Fair. Labor or curtailment of activities by,the organize- Standards Act(FLSA)(29 OFR part 516). For 1. Lion in that country,are unallowable,unless this purpose, the term'"nonprofessional em- they are necessary for the performance of ployee" shall have the same, meaning nd t: Federal programs and approved by awarding "nonexempt employee,"under FLSA. agencies. (4)Salaries and wages of'employees used in 1. Training costs. See paragraph 49 of this meeting cost sharing or matching require- I' appendix. ments on awards must be supported in the )` m.Support of salaries and wages. same manner as salaries and wages claimed 1. (1) Charges to awards for salaries and for reimbursement from awarding agencies. wages,whether treated as direct costs or in- 9. Contingency provisions. Contributions direct"costs, will be based,on documented to a contingency reserve or any similar pro- .. payrolls approved by a responsible official(s) vision, made for events the occurrence of i of the organization.The distribution of sala- which cannot be foretold with certainty as ' ries and wages to awards must be supported to time, intensity, or with..an.assurance of t. by personnel activity reports, as prescribed their happening; are unallowable. The term in subparagraph 8.m.(2) of this appendix,ex- "contingency reserve" excludes self-insur- cept when a substitute system has been ap- ance reserves (see Appendix B to this part, proved in writing.by the cognizant agency. paragraphs 8.g.(3) and 22.a(2)(d)); pension (See subparagraph E.2 of Appendix A to this 'funds (see paragraph 8.i): and_reserves,for 1 part.} , ' normal severance pay(see paragraph 8.k;) 4, (2) Reports reflecting the distribution of 10.Defense and:prosecution of criminal and t activity of each employee must be main- civil proceedings, claims,appeals and,patent tained for all staff members (professionals infringement; and nonprofessionals)whose compensation is a.Definitions.(1)Conviction,as used here- charged,. in whole or in„part, directly to in, means a,judgment or a conviction of a 1, awards. In addition, in order to support the criminal offense by any'court of competent . allocation of indirect costs, such reports jurisdiction, whether entered upon as a ver- must also be maintained for other employees diet or a,plea; including a conviction due to • t whose work involves two or more.functions a plea of nolo contendere. or activities if a distribution of their com- (2) Costs include, but are not limited to, . pensation between such functions or activi- administrative and clerical expenses; the ties is needed in the determination of the or- cost of legal services, whether performed by z ganization's indirect cost rate(s)(e.g.,anem- in-house or private counsel; and the costs of ployee engaged part-time in indirect cost so- the services of accountants, consultants, or tivities and part-time in a direct function). others retained by the organization to assist '. Reports maintained by non-profit organize- it; costs of employees, officers and trustees, tions to satisfy these requirements must and any similar costs incurred before. dur- meet the following standards: ing,and after commencement of a judicial or r (a) The reports must reflect an after-the- administrative proceeding that bears a di- fact determination of the actual activity of reef relationship to the proceedings. each employee. Budget estimates (i.e., esti- (3)•'Fraud, as used herein, means acts of i mates determined before the services are fraud corruption or attempts to defraud the 2. performed) do not qualify as support for Federal Government or to corrupt its agents, . charges to awards. acts that constitute a cause for debarment (b)Each.report must account for the total or suspension (as specified in agency regula- %, activity for which employees are corn- tions), and acts which violate the False i pensated and which is required in fulfillment Claims Act, 31 U.S.C„ sections 3729-3731, or of their obligations to the organization. the Anti-Kickback Act,41 U.S.C.,sections 51 r (c)'The reports must be signed by the indi- and 54. vidual employee, or by a responsible super- '(4)Penalty does not include restitution.re- visory official having first hand knowledge imbursement,or compensatory damages. .144 r . OMB Circulars and Guidance Pt. 230, App. B (5)Proceeding includes an investigation. (1)The costs are reasonable in relation to • b.(1)Except as otherwise described herein; the activities required to deal with the pro- . Costs incurred in connection with any crimi- ceeding and the underlying cause of action; nal, civil or administrative-proceeding (in- -(2)Payment of the costs incurred,as allow- eluding filing:of a false'certification) corn- able and allocable costs,is not,prohibited by menced by the Federal Government, or a any other .provision(s) of the sponsored • State, local or foreign government, are not award; - allowable if the.,proceeding:Relates to a vio- (8) The costs are not otherwise recovered lation of, or failure to comply with, a Fed- from the Federal Government or a third eral, State, local or foreign statute or regu- party, either directly as a result of the pro lation by the organization (including its ceeding or otherwise;and, agents and employees). and results in any of (4) The percentage of costs allowed does the following dispositions: not exceed the percentage determined by an <a)In a criminal proceeding, a conviction. authorized Federal official.to be appropriate, (b)'In a civil or administrative proceeding considering the complexity of the litigation, involving an allegation of fraud or similar generally accepted principles governing the misconduct, a determination of organize- award of legal fees in civil actions involving • tional liability. the United States as a party;and such other (c) In the case of any civil or administra- factors as may be appropriate.Such percent- five proceeding, the imposition of a mono- age shall not exceed 80 percent. However, if tary penalty. an agreement reached under subparagraph (d)A final decision by an appropriate Fed- 10.c of. this appendix has explicitly consid- • • eral official to debar or suspend the organ_ ered-this 80 percent limitation-and permitted nation,to rescind or void an award,or to ter- a higher percentage,then the full amount of minate an award for default by reason of a costs resulting.from that agreement shall be violation or failure to comply with a law or• allowable, •• regulation. f. Costs incurred by the organization in (e) A disposition, by consent or com- connection with the defense of suits brought promise,if the action could have resulted in by its employees or ex-employees under sec- L. any of the dispositions described.in subpara- 100,ion 2 ),o incthe Major Fraud costA oft of all relief(Pub. e- p 100-700), including` the nec- graphs I0.b.(1)(a),(b),(c)or(d)of this appen- essary to make such employee whole, where dix,:, the organization was found liable or settled, (2) If•more than one proceeding involves are unallowable, the same alleged misconduct,the costs of all g; Costs of legal, accounting, and consult- such proceedings shall be unallowable if any ant services, and related costs, incurred in one of them results in one of the dispositions connection with defense against -,Federal shown in subparagraph 10.b.(1)of this appen- Government claims or appeals, antitrust • dlx• suits,or the prosecution of claims or appeals c, If a proceeding referred to in subpara- against the Federal Government, are unal- graph 10.b of this appendix is commenced by lowable. the Federal Government and is resolved by h. Costs of legal, accounting, and consult- consent or compromise pursuant to an agree- ant services, and related costs, incurred in • ment entered into by the organization and connection with-patent infringement litiga- the Federal Government, then the costs in- tion, are unallowable unless otherwise pro- curred_ by the organization in connection vide&for in the sponsored awards. with such proceedings that are otherwise not i. Costs which may be unallowable under allowable under subparagraph 10.b of this ap- this paragraph,including directly associated • pendix may be allowed to the extent specifi- costs, shall be-segregated and accounted for cally provided in such agreement, by the organization separately. During-the d. If a proceeding referred to in subpara-. .pendency of any proceeding covered by sub- graph 10.b of this appendix is commenced by paragraphs 10.b and f of this appendix, the a State,local or foreign government,the an- Federal Government shall generally with- thorized Federal official may allow the costs hold payment,of such costs. However, if.in incurred by the organization for such pro- the best interests of the Federal Govern- ceedings, if such authorized official deter- ment, the Federal Government may provide mines that the costs were incurred as a re- for conditional payment upon provision of suit of a specific term or condition of a fed-- adequate security, or other adequate assur- erally-sponsored award, or specific written ance,and agreements by the organization to direction of an authorized official of the repay all unallowable costs, plus interest, if sponsoring agency, the costs are subsequently determined to be e. Costs incurred in connection with pro- unallowable. ceedings described in subparagraph 10.b of 11. Depreciation and use allowances. a. this appendix, but which are not made unal- Compensation for the use of buildings,other lowabl'e by that subparagraph, may be al- capital improvements, and equipment on lowed by the Federal Government, but only hand may be made through use allowance or to the,extent that: depreciation.However, except as provided in 19.5 4 • 1 Pt.230,App. B 2 CFR Ch. II (1-1=12 Edition> paragraph 11.f of this appendix, a combina- under subparagraph 11.d of this appendix, tion of'the two methods may not be used in would be viewed as fully depreciated. How- 1. connection with a single class of fixed assets ever,a reasonable use allowance may be ne- <e.g., buildings, office equipment, computer gotiated for such assets if warranted after equipment,etc.): taking into consideration the amount of de- b. :. The computation of use allowances or predation previously charged to the Federal 1depreciation shall be based on the acquisi- Government, the estimated useful life re- I` tion cost of the assets involved.The acquisi-. maining at time of:negotiation,the effect of I tion cost of an asset donated to the non-prof- any increased maintenance charges or de- it organization by a third party shall be its creased efficiency due to age, and any other fair market value at the time of the dona- factors pertinent to the utilization of the tion. asset for the purpose contemplated. •b. The computation of use allowances:pr g.Criteria where the use allowance method I. depreciation wilt exclude: is followed: t.. (1)The cost of land; (1)The use allowance for buildings and im- i (21 Any portion of the cost of buildings and provement (including land improvements, equipment borne by or donated by the Fed, such as paved parking areas,,,fences, and I eral Government irrespective of where title sidewalks) will be computed at an annual it 1 was originally vested or where it presently rate-not exceeding two percent of.aoquisition resides;and cost, - i (3)Any portion of the cost of buildings and (2)The use allowance for equipment will be equipment contributed by or for the non- computed at an annual rate not exceeding profit organization in satisfaction of a statu- six and two-thirds percent of acquisition tory matching requirement. cost.When the use allowance method is used i d. General criteria where depreciation for buildings, the entire building must be pp method is followed: treated as a single asset; the building's corn- F (1)The period of useful service(useful life)' ponents (e.g., plumbing system, heating and established in each case for usable capital air conditioning, etc.) cannot be segregated . assets must take into consideration such fac- from the building's shell. tors as type of construction, nature of the (3) The two percent limitation, however, 1 equipment used, technological developments need not be applied to equipment which is :: in the particular program area, and the re- merely attached or fastened to the building newal.and replacement policies followed for but not permanently fixed to it and which is 1 the individual items or classes of assets in- used as furnishings or decorations or"for spe- volved. The method of depreciation used to. cialized purposes (e.g., dentist chairs and assign the cost of an asset(or group of as- dental treatment units,counters, laboratory sets) to accounting periods shall reflect the benches bolted to -the floor, dishwashers, i pattern of consumption of the asset during modular furniture, carpeting, etc.). Such . its useful life. equipment will be considered as not being k (2) In the absence of clear evidence indi- permanently fixed to the-building if it can be eating that the expected consumption of the removed without the need for costly or eX- asset-will be significantly greater or:lesser in tensive alterations or repairs to the building .the early portions of its useful life than in. or the equipment. Equipment that meets the later portions, the straight-line method these criteria will be subject to the 6%.per- shall be presumed to be the appropriate cent equipment use allowance limitation. method. h. Charges for use allowances or deprecia- (3) Depreciation'methods once used shall tion must be supported by adequate property ;- not be changed unless approved in advance records and physical inventories must be by the cognizant Federal agency. When the taken,at least-once every two years(a statis- s depreciation method is introduced for appli- tical sampling basis is acceptable) to ensure cation to assets previously subject to a use that assets exist and are usable and needed. 1 allowance, the combination of use allow- When the depreciation method is followed, antes and depreciation applicable to such as-- adequate depreciation records indicating the ' sets must not exceed the total acquisition amount of depreciation taken each period E .cost of the assets. must also be maintained. e. When the depreciation method is need 12.Donations and contributions. for buildings, a building's shell may beeeg- a. Contributions or donations rendered. negated from each building component (e.g., Contributions or donations, including cash, plumbing system, heating, and air condi- property, and services, made by the organi- • tioning system, etc.) and each item depre- zation, regardless of the recipient, are unal- ciated over its estimated useful life; or the lowable. entire building(i.e., the shell and all compo- b.Donated services received: nents)may be treated as a single asset and (1) Donated or volunteer services may be depreciated over a single useful life. furnished to an organization by,professional .f.When the depreciation method is used for and technical personnel, consultants, and it.particular class of assets, no depreciation other skilled and unskilled labor. The value iii fmay be allowed on any such assets that, of these services is not reimbursable either 9'6� I i i f I i • OMB-Circulars and Guidance Pt.230,App. B 1. . • as a direct.or indirect cost. However, the b.Such costs will he equitably apportioned value of donated services may be used to to all activities of the non-profit organiza- meet cost sharing or.matching requirements tion.Income generated from any of these me- li''-' in accordance with the Common Rule. tivities will be credited to the.cost thereof (2)The value of donated services utilized in unless such income has been irrevocably set the performance of a direct cost activity over to employee welfare organizations. shall; when material in amount; be consid- 14. Entertainment costs. Costs of enter- i eyed in the.deterrnination of the non-profit tainrnen$, including amusement, diversion, organization's indirect costs or rate(s) and, and social activities and.any costs directly accordingly, shall be allocated a' propor- associated with such costs (such as tickets tionate share of applicable indirect costs when the following exist: to shows or sports events, meals, lodging, • (a) The aggregate value of the services is, rentals, transportation, and gratuities) are ,'.' unallowable. • material; (b)The services are'supported by a signifi- 15. Equipment•aisd other capital expends- cant amount of the indirect costs.incurred, tures, by the non-profit organization;and a. For purposes of this subparagraph, tine (c)The direct cost•activity is not'pursued following definitions apply: 1 • primarily for the benefit of the Federal Gov- (1)"Capital Expenditures" means expends- ernment. tures for the acquisition cost of capital,as- k; (3) In those instances where there is no sets(equipment,buildings,land),or expendi- k•.. basis for determining the fair market value tures to.make improvements to capital as of the services rendered, the recipient and sets that materially increase their value or t! the cognizant agency shall:negotiate an ap- useful:life. Acquisition.cost means the cost propriate allocation of indirect cost to the of the asset including,the cost to put it in i services. place.Acquisition coat for equipment,for ex- (4)Where donated services directly benefit ample, moans the net invoioe price of the a project supported by an award, the indirect equipment, including the cost of any modi- costs allocated to the services will be consid- fications,attachments,accessories,or auxil- '" ered as a.part of the total costs of the iary apparatus necessary to make it usable r project. Such indirect costs may be reim- for the purpose for which it is acquired.An- bursod under the award or used to meet cost ciliary charges, such as taxes, duty, protec- sharing or matching requirements, tive in transit insuranoe,freight,and instal- (5) The value of the donated services may lation may be Included in, or excluded from be used to meet cost sharing or matching re- the acquisition cost in accordance with the quirements under conditions described in non-profit organization's regular accounting Section 215.23 of 2 CFR part 215.(OMB Cir- practices, cular A-110). Where donated services are (2) "Equipment"-means an article of non- treated as indirect costs, indirect cost rates expendable, tangible personal property hav • - will separate the value of the donations=sla ing a useful life of more than one year and that reimbursement will not be made. an acquisition cost which equals,or exceeds c. Donated goods or. space. (I) Donated the lessor of the capitalization level estab ' goads;i.e.,expendable personal property/sup lished by the non-profit organization for fi- plies, and donated use of space may be fur- nished to a non-profit organization. The nancsai statement purposes,.or S5000, value of the goods and space is not reimburs_ (3) "Special purpose equipment" means able either as a direct or indirect cost. equipment which is used only for research, (2)The value of the donations may be used medical,scientific,or other technical activi- ,. to meet cost sharing or matching share re- ties. Examples of special purpose equipment quirements under the conditions described in include microscopes, x-ray -machines,:-(1.r• 2 CFR.part 215 (OMB Circular A-110). Where gical instruments,and spectrometers, r donations are treated as indirect costs.indi- (4) "General purpose equipment" means rect cost rates will separate the value of the equipment,which is not limited to research, donations so that reimbursement will not be medical, scientific or.other technical activi- `" made.- - ties. Examples include office equipment and • 13. Employee morale, health, and welfare furnishings, modular Offices, telephone net- costs. works, information technology equipment a.The costs of employee information pub- and systems,air conditioning equipment,re- lications, health or first-aid clinics and/or production and printing equipment, and infirmaries, recreational activities, dm, `motor vehicles, • ployee counseling services,and any other ex- b.The following rules of allowability shall penses incurred in accordance with the non- apply to equipment and other capital 'ey: profit organization's established practice,or penditures: custom for the improvement of working con- (1) Capital expenditures for general par- ditions, employer-employee relations, m pose equipment,buildings,and land are Waal- ployee morale, and employee performance lowable as direct charges, except where ap- are allowable. proved in advance by the awarding agency. 167 1 i . tT . s i. 1. j: Pt.230,App. B 2 CFR Ch. II.(1-1-12 Edition) i (2)Capital expenditures for special purpose shall be the difference between_the amount ' • equipment are allowable as direct costs,pro- realized on the property and the L; vided that items with a unit cost of 35000 or. undepreciated basis of.the property. more have the prior approval of the awarding (2) Gains and losses on the disposition of i: agency. depreciable property shall not be recognized (3) Capital expenditures for improvements as a separate credit or charge wider the fol- to land,buildings,or equipment which mate- lowing conditions: i rially increase their value or useful life are ' (a)The gain or loss Is processed through a unallowable as a direct cost except with the depreciation account and is reflected in the prior approval of the awarding agency. depreciation allowable finder paragraph 11 of (4)When approved as a direct charge.pursu- this appendix. 1 • ant to paragraph 15.b.(1), (2), and (3) above, (b) The property is given in exchange as capital expenditures will be"charged in the part of the purchase price of a similar item l' period in•which the expenditure is incurred, and the gain or loss is taken into account in or as otherwise determined appropriate by determining the depreciation cost basis of i and negotiated with the awarding agency. the new item, (5) Equipment and other capital.expends- (c)A loss results from the failure to main .1: tares-are unallowable as indirect costs.How- tain permissible insurance, except as other- i ever,gee paragraph 11.,Depreciation and use wise,provided in paragraph 22 of this appen- allowance, of_this appendix for rules on the disc.: allowability of use allowances or deprecia- '(d) Compensation for the use of the prop- tion on buildings,capital improvements,and erty was provided through use allowances in r equipment. Also, see paragraph 43., Rental lieu of depreciation in accordance with para 1 costs of buildings and equipment, of this ap- graph 9 of this appendix. i pendix for rules on the allowability of rental (e) Gains and losses arising from mass or i' . costs for land,buildings,and equipment. extraordinary sales; retirements, or other (6) The unamortized portion of any equip- dispositions shall be considered on a case-by- i ment written off as a result of a change in case basis. capitalization levels may be recovered by b. Gains or losses of any nature arising continuing to claim the otherwise allowable from the sale or exchange of property other l use allowances or depreciation on the equip- than the,property covered in subparagraph a ment, or by amortizing the amount to be shall be excluded in computing award costs. written off over a period of years negotiated 19. Goods or services for personal use. with the cognizant agency: Costs of.goods or services for,personal use of 16. Fines and penalties. Costs of fines and the organization's employees are unallow- penalties resulting from violations of, or able regardless of whether the cost is re- i failure of the organization to comply with ,ported as taxable income to the employees. y• Federal, State, and local laws and regula- `20.Housing and personal living expenses.a. tions are unallowable except when incurred Costs of housing (e.g., depreciation, mainte- ` as a.result of compliance with specific provi- nance, utilities, furnishings, rent, etc.), sions of an,award or instructions in writing housing allowances and personal living ex- 9 from the awarding agency. penses for/of the organization's officers are ; 17. Fund raising and investment manage- unallowable as fringe benefit or indirect ment costs. a. Costs of organized fund rais- costs regardless of whether the cost is re- ing, including financial campaigns, endow- ported as taxable income to the employees. '• ment drives, solicitation of gifts and be- These costs are allowable as direct costs to i quests, and similar expenses incurred solely sponsored award when necessary for the per- ' to raise capital or obtain contributions are formance of the sponsored award and ap • - unallowable, proved by awarding agencies. b. Costs of investment counsel and staff b.The term"officers"includes current and and similar expenses incurred solely to en- past officers and employees. hence income from investments are unallow- 21. Idle facilities and idle capacity. a. As able. used in this section the following terms have 1 c. Fund raising and investment activities the meanings set forth below: 1 shall be allocated an appropriate share of in- (1) "Facilities" means land and buildings direct costs under the conditions described or any portion thereof, equipment individ I" in subparagraph B.3 of Appendix A to this wally or collectively, or any other tangible 1 part. capital asset, wherever located, and whether . 18. Gains and losses on depreciable assets. owned or leased by the non-profit organiza- 1 a.(1)Gains and losses on sale,retirement,or tien. ' other disposition of depreciable property (2) "Idle.facilities" means completely un • - shall be included in the year in which they used facilities that are excess to the non- occur as credits or charges to cost group- profit organization's current needs. ing(s)in which the depreciation applicable to (3) "Idle capacity" means the unused Ca- such,property was included. The amount of pacity of partially used facilities. It is the ' ' the gain or loss to be included as a credit or difference between: That which a facility charge to the appropriate cost grouping(s) could achieve under 100 percent operating 198 . , • 1. s. OMB Circulars and Guidance Pt.230,App. B £ time on a one-shift basis less operating the rates and;premiums shall be reasonable interruptions resulting'from time lost for re- under the circumstances. pairs, setups, unsatisfactory materials, and (b)Costs allowed for business interruption 1 other normal delays;and the extent to-which or other similar insurance shall be limited to I the facility was actually used to meet de- exclude coverage of management fees. , mauls during the accounting period. A (c)Costs of insurance or of any provisions multi-shift basis should be used if it can be for a reserve- coveting the risk of loss or shown_that this amount of usage would nor- damage to Federal property are allowable mally be expected for the type of facility in- only to the extent that the organization is volved. liable for such loss or damage. i, (4)"Cost of idle facilities or idle capacity" (d)Provisions for a reserve under a self-in- i- means costs such as maintenance, repair, surance program are allowable to the extent- housing, rent, and other related costs, e.g., that types of coverage, extent of coverage, 1, insurance, interest; property taxes and de- rates, and premiums would have been al- predation or use allowances. lowed had insurance been:purchased to cover 1 b. The costs of idle facilities are unallow- the risks.However, provision for known or # able except to the extent that: reasonably estimated self-insured liabilities, (1)They are necessary to meet fluctuations which do not become payaple for more than in.workload;or one year after the provision is made, shall i (2) Although not necessary to meet floc- not exceed the present value of the liability. buations in workload, they were necessary (e)Costs of insurance on the lives of trust- when acquired and are now idle because of ees, officers, or other employees holding po- changes in program requirements, efforts to. sitions of similar responsibilities are allow • - achieve more economical operations,reorga- able only to the extent that the insurance nization, termination. or other causes which represents additional compensation(see sub- could not have been reasonably foreseen,- paragraph 8.g(4) of.this appendix). The cost Under the exception stated in this subpara- of such insurance when the organization is graph, costs of idle facilities are allowable identified as the beneficiary is unallowable. for a reasonable period of time, ordinarily (f) Insurance against defects. Costs of in- not to exceed one year,depending on the ini- surance with respect to any costs incurred to dative taken to use,lease,orr dispose of such correct defects in the organization's mate- facilities. rials or workmanship are unallowable. c. The costs.of idle capacity are normal (g) Medical liability (malpractice) insur- costs �: of doing business and are a factor in ance.Medical liability insurance is.an allow- 1 the normal fluctuations of usage or indirect able cost of Federal research programs only ; cost rates from period.to period:-Such costs to the extent that the Federal research pro- 4 are allowable,provided that the capacity is grams involve human subjects or training of a reasonably anticipated to be necessary or participants in research techniques. Medical i was originally reasonable and is not subject liability insurance costs shall be treated as a i to reduction Cr elimination by use on other direct cost and shall be assigned to indi- i, Federal awards, subletting, renting, or sale, victual,projects based on the manner in which • in accordance with sound business, eco- the insurer allocates the risk to the popu- nomic, or security practices.Widespread idle' lation covered by the insurance, 1 capacity throughout an entire facility or {3") Actual losses which could have been among a group of assets having substantially covered by permissible insurance (through j the same function may be considered idle fa- the purchase of insurance or a self-insurance cilities,- program) are unallowable unless expressly 1 • 22.Insurance and indemnification.a,Insur- provided for in the award,except: s. ance includes insurance which the organize- (a) Costs incurred because of losses:n¢t' tion is required to carry, or which is ap- .covered under nominal deductible insurance proved, under the terms of the award and coverage provided in keeping with sound ) any other insurance which the organization business practice are allowable. .. maintains.In connection with the general (b)Minor losses not covered by insurance, conduct of its operations. This paragraph such as spoilage, breakage, and disappear- does not apply to insurance which represents ance of supplies;which occur in the ordinary fringe benefits for employees (see subpara-. course of operations,are allowable. r graphs 8.g and 8.1(2)of this appendix). b. Indemnification includes securing thi+_ (1)Costs of insurance required or approved, -organization against liabilities to third per- and maintained, pursuant to the award are sons and any other loss or damage,not com- allowable. pensated by insurance or otherwise.The Fed- (2)Costs of other insurance maintained by eral Government is obligated to indemnify the organization in connection with the gen- the organization only to the extent expressly , eral conduct of its operations are allowable provided in the award. subject to the following limitations: 23. Interest. a. Costs incurred for interest ' (a)Types and extent of coverage shall be in on borrowed capital, temporary use of en- 4 accordance with sound business practice and dowment funds, or the use of the non-profit 4 199 • .. ) Pt.230,App. B 2 CFR Ch. II (1-1-12 Edition) organization's own funds, however rep- bargain purchase option, operating and . resented, are unallowable.However, interest maintenance costs,and taxes not included in ),. on debt incurred after September 29, 1995 to the capital leasing arrangement,less any es- acquire or replace capital assets (including timated credits due under the lease at the renovations, alterations, equipment, land, end of the period defined above. Projected and capital assets acquired through capital operating lease costs shall be based on the. leases),acquired after September 29,•1995 and anticipated cost of leasing comparable Willi- used in support of Federal awards is allow- ties at fair market rates under rental agree- able,provided that: ments that would be renewed or reestab- (1) For facilities acquisitions (excluding' lished over the period defined above,and any renovations and alterations)costing,over$10 expected maintenance costs and allowable million where the Federal (lovernident's re- property taxes to be borne by the non-profit imbursement is expected to equal or exceed organization directly or as part of the lease 40 percent of an asset's cost, the non-profit arrangement. organization prepares, prior to the acquisi- (3) The actual interest cost claimed is Mon or replacement of the capital asset(s),a predicated upon interest rates that are no justification that demonstrates the need for higher than the fair market rate available to the facility in the conduct:of federally-spon- the non-profit organization from an unre- Bored activities.Upon request,the needs jus- laced.("arm's length")`third party. i. tification must be provided to the Federal (4)Investment earnings, including interest . agency with cost cognizance authority as a income, on bond or loan principal, pending i. prerequisite to the continued allowability of payment of'the construction or acquisition interest on debt and depreciation related to- costs, are used to offset•allowable interest the facility. The needs justification for the cost.Arbitrage earnings reportable to the In- acquisition of a facility should include, at a ternal Revenue Service are not required to minimum,the following: be offset against allowable interest costs. (a) A statement of purpose and justifica- (5) Reimbursements are limited to the Mon for facility acquisition or replacement. least costly alternative based on the total (b) A statement as to why current facili- cost analysis required under subparagraph ties are not adequate, 23.b. of this appendix. For example, if an op- (c) A statement of planned futupe use of crating lease is determined to be less costly the facility. than purchasing through debt. financing, (d) A description of the financing agree- then reimbursement is limited to the meat to be arranged for the facility. amount determined if leasing had been used. (e) A summary of the building contract In all cases where a lease/purchase analysis with estimated cost information and state- is performed, Federal reimbursement shall meat of source and use of funds. be based upon the least expensive alter- (f)A schedule of planned occupancy;dates. native. (2)For facilities'costing over$500,000, the (6) Non-profit organizations are also sub- non-profit organization prepares,prior to the ject to the following conditions: acquisition or replacement of the facility, a (a) Interest on debt incurred to finance or lease/purchase analysis in accordance with refinance assets acquired before or reac- • the previsions of§§215.30 through 215.37 of 2 quired after September29, 1995, is not allow- . CFR 215 (OMB Circular A-110), which shows able. that a financed purchase or.capital lease is (b) Interest attributable to fully •depre- less costly to the organization than other Mated assets is unallowable. leasing alternatives, on a net,present value (c)For debt arrangements over$1 million, basis.Discount rates used should be equal to unless the non-profit organization makes an the non-profit organization's anticipated in- initial equity contribution to the asset pur- terest rates and should be no higher than the chase of 25 percent or more, non-profit orga- fair market rate available to the non-profit nizations shall reduce claims for interest ex- organization from an unrelated ("arm's pease by an amount equal to imputed inter- length") third-party. The lease/purchase est earnings on excess cash flow,which is to analysis shall include a comparison of the be calculated as follows. Annually.non-prof.- net present value of the projected total cost it organizations shall prepare a cumulative comparisons of both alternatives over the pe- (from the inception of the project) report,of • Mod the asset is expected to be used by the monthly cash flows that includes inflows and non-profit organization. The cost compari- outflows, regardless of the funding source. sons associated with purchasing the facility Inflows consist of depreciation expense, am- 1 shall include the estimated purchase price, ortization of capitalized construction inter- anticipated operating and maintenance costs est, and annual interest expense. For cash (including property taxes, if applicable) not flow calculations, the,annual inflow figures included in the debt financing,less any esti- shall be divided by the number of months in mated asset salvage value at the end of the the year(usually 12)'that the building is in period defined above. The cost comparison service for monthly amounts. Outflows con- for a capital lease shall include the esti- sist of initial equity contributions, debt mated total lease payments, any estimated principal payments(less the pro rata share 200.. • ' I 1 Stl.. !i i I • . OMB Circulars and Guidance Pt.230,App. B I . attributable to the unallowable costs of (.1„)Attempts to influence the outcomes of land) and interest payments. Where cumu- any Federal, State; or local election, ref • E. lative inflows exceed cumulative outflows; erendum, initiative, or similar procedure, interest shall be calculated on, the excess through in kind or cash contributions, en- inflows for that period and be treated as a re- dorsemcnts,publicity,or similar activity; duction to allowable interest expense, The (2) Establishing,. administering, contrib- . rate of interest to be used to compute earn- uting'to, or paying the expenses of a polit ings on.excess'cash flows shall be the three ical party, campaign, political action corn- month Treasury Bill closing rate as of the mittee,or other organization established Or last business day of that month. the purpose of influencing the outcomes of 1 (d) Substantial relocation of federally elections; } sponsored activities from a facility financed (3)Any attempt to influence:The introduc- by indebtedness, the cost of which was fund- tion of Federal or State legislation; or the ed in whole or.part through Federal,reim- enactment or modification of any pending . bursements, to another facility prior to the Federal or State legislation,through comma- t expiration of a period.of 20 years requires no- nication with any member or employee of tice to the Federal cognizant:agency.The ex- the Congress or State,legislature (including i tent of the relocation, the amount of the efforts to influence.State or local officials to t; , Federal participation in the financing, and engage in similar lobbying activity),or with I the depreciation and interest charged to date any Government official or employee in con-may require negotiation and/or downwardnection with a decision to sign or veto on- ' adjustments of replacement space charged to rolled legislation; Federal programs in the future. (4)Any attempt to influence:The introduc- • (e)The allowable costs to acquire facilities lion of Federal or State legislation; or the • and equipment are limited to a fair market enactment or modification of any pending ' value available to the non-profit organize,- Federal or State legislation by,preparing, tion from an unrelated ("arm's length") distributing or using publicity or props- third party. Banda, or by urging members of the general b. For nonprofit organizations subject Co- public or any segment thereof to contribute "full coverage" under the Cost Accounting to or participate in any mass demonstration, Standards (CAS) as defined at 48 CFR march, rally, fundraising drive, lobbying 9903.201, the interest, allowability provisions campaign or letter writing or telephone cam- or of subparagraph a do not apply. Instead, Baig Leg these organizations' sponsored agreements ,te Legielative liaison activities, including corn- are subject to CAS 414(48 CFR 9903.414),agre coat, attendance at legislative sessions or of Money as an element of the cost of f cili- mittee hearings, gathering information re- ties capital, and CAS 917 (48 CPR 9903.417), o f legislation, legislation, and analyzing'the effect ,. pof, when such activities are car- cost of money as an element of the cost of tied on in support of or.in knowing prepara- capital assets under construction... tion for an effort to engage in unallowable e:The following definitions are to be used_ lobbying. for purposes of this paragraph: b. The following activities aro excepted (1)Re-acquired assets means assets held by from the coverage of subparagraph 25.a of the non-profit organization prior to .Sep- this appendix: tember 29, 1995 that have again come to be (1)Providing'a technical and•factual press _ held by the organization, whether through entation of information on a topic directly repurchase or refinancing. It does not in- related to the performance of a,grant, con- clude assets acquired to replace older assets. tract or other agreement through hearing (2) Initial equity contribution means the testimony,statements or letters to the Con- amount or value of contributions made by gress or a State legislature, or subdivision, non-profit organizations for the acquisition member, or cognizant staff member thereof, . of the asset or prior to occupancy of radii- in response.to a documented request'(includ- ' ties. ing a Congressional Record notice requesting J (3) Asset costs means .the capitalizable testimony or statements for the.record at a • costs of an asset, including construction regularly scheduled hearing)made by the re- l' . costs,acquisition costs,and other such costs cipient member,legislative body or subdivi- capitalized in accordance with GAAP. sloe, or a cognizant staff member thereof: 24. Labor relations costs.Costs incurred in provided such information is readily obtain- maintaining satisfactory relations between. able and can he readily put in deliverable i the organization and its employees, .includ- form; and further provided that costs under ing costs of labor management committees, this section for travel, lodging or meals are employee publications,and other related ac= unallowable unless incurred to offer testi- tivities are allowable. mony at a regularly scheduled Congressional •• 25. Lobbying. a. Notwithstanding other hearing pursuant to a written, request for provisions of this appendix, costs associated such presentation made by the Chairman or . with the following activities are unallow- Ranking Minority Member of the Committee able: or Subcommittee conducting such hearing,. •gOi. } • • {. • 1 • i • 1_ t i - Pt.230,App. B 2 CFR Ch. II (1-1-12 Edition) i (2)Any lobbying made unallowable by sub- of the Executive Branch of the Federal Gov- paragraph 25.a.(3) of this appendix to influ- ernment to give consideration or to act re- 1 ence State legislation in order to directly re- garding a sponsored,agreement or a regu- duce the cost, or to avoid material impair- latory matter are unallowable.Improper in- ment of the organization's authority to per- fluence means any influence that induces or i form the grant, contract, or other agree- tends to induce a Federal employee or officer i ment. to give consideration or to act regarding,a i (3) Any activity specifically authorized by federally-sponsored agreement or regulatory statute to be undertaken with funds from matter on any-basis other than the merits of the grant,contract,or other agreement. the matter. c. (1) When an organization seeks ream- 26. Losses on other sponsored agreements bursement for indirect costs, total lobbying fir contracts. Any excess of costs over in- costs shall be separately,identified in the in- come on any award-is unallowable as a cost direct cost rate proposal, and thereafter of any other award.This includes,but is not treated as other. unallowable activity costs limited to, the organization's contributed in accordance with the procedures of sub, paragraph B,3 of Appendix to this part, portion by reason of cost sharing agreements (2) Organizations shall submit, as part of or any under-recoveries through negotiation the.annual indirect.cost rate proposal, a cer- of lump suilA; for, or ceilings on, indirect i. tification that the requirements and stand costs, ards of this paragraph have been complied. 27.Maintenance and repair costs. Costs in- with. curred for necessary maintenance, repair, or (3) Organizations shall maintain adequate upkeep of buildings and equipment (includ- ' records to demonstrate that the determina- ing Federal property unless otherwise pro- 'i • tion of costs as being allowable or unallow- vided for) which neither add to the perma- 'able pursuant to paragraph 25 complies with vent value of the property nor appreciably 1 the requirements of this Appendix. prolong its intended life,but keep it in an ef- (4)Time logs, calendars, or similar records ficient operating condition, are allowable. shall not be required to be created for pur.- Costs incurred'for improvements which add poses of complying with this paragraph dur- to the permanent value of the buildings and f •ing any particular calendar month when:the equipment or appreciably prolong their in- i employee engages in lobbying(as defined in tended life shall be treated as capital,a.. subparagraphs 25.a, and b. of this appendix) penditurea (see paragraph 15 of this appen- 25 percent or less of the employee's corn- dix),. • pensated hours of employment during that 26. Materials and supplies costs. a. Costs 1 calendar month, and within the .preceding incurred for materials, supplies• and lab- five-year period, the organization has not ricated parts necessary to carry out a Fed- materially misstated allowable or unallow- eral award are allowable. able costs of any nature, including legisla- b. Purchased materials and supplies shall { tive lobbying costs. When the conditions de- be charged at their actual prices, net of ap- scribed in this subparagraph are met,organs- placable credits. Withdrawals from general zations are not required to establish records stores or stockrooms should be charged at to support the allowability of claimed costs their actual, net cost under any recognized in addition to records already required or method of pricing inventory withdrawals, maintained. Also, when the conditions de- Ir scribed in this subparagraph are met,the ab- consistently applied. Incoming transpo sence of time logs, calendars, or similar tation charges are a proper part of materials records will not serve as a basis for dis- and supplies costs. allowing costs by contesting estimates of c. Only materials and supplies actually lobbying time spent by employees during a used for the performance of a Federal award calendar month. may be charged as direct costs. • (5)Agencies shall establish procedures for d. Where federally-donated or furnished resolving in advance, in consultation with. materials are used in performing the Federal j OMB, any significant questions or disagree- award, such materials will be used without meats concerning the interpretation or ap- charge. plication of paragraph 25. Any such advance 29. Meetings and conferences. Costs .Lit I resolution shall be binding in any subsequent meetings and conferences, the primary pur- settlements, audits or investigations with .pose of which is the dissemination of tech- respect to that grant or contract for pur- nical information, are allowable. This in- poses of interpretation of.this Appendix;pro- chides costs of meals, transportation;rental vided, however, that this shall not be con- of facilities, speakers' fees, and other items I strued to prevent a contractor or grantee incidental to such meetings or conferences. 4 from contesting the lawfulness of such a.de- But see paragraphs 14.,Entertainment costs, termination. and 33.,Participant support costs of this ap- d,Executive lobbying costs.Costs incurred pendix. .. in attempting to Improperly influence either 30.Memberships, subscriptions,and profes- I directly or indirectly,an employee or officer atonal activity costs. a. Costs of the non-. 202 . • i• • l- • • ,ff ' k OMB Circulars and Guidance Pt. 230,App. B profit organization's membership in tarsi- or any United States patent application, ness, technical, and professional organize- where the Federal award does not require tions are allowable, conveying title or a royalty-free license to b. Costs of the non-profit organization's the Federal Government (but see paragraph subscriptions to business, professional, and 45., Royalties and other coats for use of pat- technical periodicals are allowable. ents and copyrights,of this appendix). c. Costs of membership, in any civic or 35. Plant and homeland security costs. community organization are allowable with Necessary and reasonable expenses incurred prior approval by Federal cognizant agency. for routine and homeland security to protect d.Costs of membership in any country club facilities, personnel, and work products are or social or dining club or organization are allowable. Such costs include, but are not unallowable. limited to, wages and uniforms of personnel 31. Organization costs. Expenditures, such engaged in security activities; equipment; as incorporation fees, brokers' fees, fees to: barriers; contractual security services; con,- promoters,-organizers or management con- sultants;etc.Capital expenditures.for home- sultants, attorneys, accountants, or.invest- land and plant security purposes are subject ment counselors, whether or not.employees to;paragraph 15., Equipment and other cap of the organization, in.,connection.,with es- ital expenditures,of this appendix. tablishment or'reorganization of an organs- 36. Pre-agreement costs. Pre-award costs zation,are unallowable except with prior ap- are those incurred prior to the effective date proval of the awarding agency, of the award directly pursuant to the nego- 32. Page charges in professional journals. •tiation and in anticipation of the award Page charges for professional journal publi- where such costs are necessary to comply cations are allowable as a necessary part of with the proposed delivery schedule or period research costs,where: of performance. Such costs are allowable p` a. The research papers report work grip- only to the extent that they would have been s ported by the Federal Government;and allowable if incurred.after the date of the b.The charges are levied impartially on all award and only with the written approval of research papers published by the journal, the awarding agency. whether or not by federally-sponsored au- 37. Professional services costs. a. Costs.of thors., _professional and consultant services ren- 33. Participant support costs. Participant dared by persons who are members of a par- support costs are direct costs for items such ticular profession or possess a.special skill, as stipends or subsistence allowances,travol and who are not officers or employees of the allowances, and registration fees paid to or non-profit organization, are allowable, sub- on behalf of participants or trainees(but not. ject to subparagraphs b and c when.reason- employees) in connection with meetings, able in relation to the services rendered and conferences, symposia, or training projects. when not contingent upon recovery of the These costs are allowable with the prior e.p- costs from the Federal Government. Tn-addi- proval of the awarding agency. tion, legal and related services are limited 34.Patent costs. a.The following costs re- under paragraph 10 of this appendix. 1 lating.to patent and copyright matters are b. In determining the allowability of costs allowable: cost of preparing disclosures, re- in a particular case, no single factor or any ports, and other documents required by the special combination of factors is necessarily Federal award and of searching the art to., determinative. However, the following fac- the extent necessary to make such disclo- tors are relevant: cures; cost of preparing documents and any (1)The nature and scope of the service ren- other patent costs in connection with the fil- dered in relation to the service required. ing and prosecution of a United States pat- (2) The necessity of contracting for the l ent application where title or royalty-free 11- service, considering the non-profit organiza- cense is required by the Federal Government tion's capability in the particular area. to be conveyed to the Federal Government; (3)The past pattern of such costs, particu- and general counseling services relating to larly in the years prior to Federal awards. patent and copyright matters,such as advice (4) The impact of Federal awards on the on patent and copyright laws, regulations, non-profit organization's business(i.e., what clauses, and employee agreements (but see new.problems have arisen). paragraphs 37., Professional services costs, (5)Whether the proportion of Federal work and 44., Royalties and other costs for use of to the non-profit organization's total busi- patents and copyrights,of this appendix). ness is such as to influence the non-profit or- b. The following costs related to patent ganization in favor of Incurring the cost, and copyright matter are unallowable: .,particularly where the services rendered are {l) Cost of preparing disclosures; reports, not of a continuing nature and have little re- and other documents and of searching the lationship to work under Federal grants and art to the extent necessary to make disclo- contracts. sures not required by the award. (6) Whether the service can be performed (2) Costs in connection with filing and more economically by direct employment prosecuting any foreign patent application, rather than contracting. 203 Pt.230, App.B 2 CPR Ch. II (1-1-12 Edition) (7) The qualifications of the individual or b. In publications,costs of help wanted ad- concern rendering the service and the cue- vertising that includes'color,includes adver- • tomary fees charged, especially on non-Fed- tising material for other than recruitment • eral awards, purposes, or is excessive in size(taking into (8)Adequacy of the contractual agreement consideration recruitment 'purposes for for the service(e.g., description of the serv- which intended and normal organizational ice, estimate of time required, rate of corn- practices in this respect),are unallowable. pensation,and termination provisions). c.Costs of help wanted advertising,special c. In addition to the faotors in subpara- emoluments, fringe benefits, and salary al- graph 37.b of this appendix, retainer fees to lowanoes incurred to attract professional be allowable must be supported by evidence personnel from other organizations that do of bona fide services available or rendered not meet the test of reasonableness or do not 38.Publication and printing,costs.a.Publi- conform with the established practices of the cation costs include the costs of printing(in- organization,are unallowable. eluding the processes of composition, plate- d.Where relocation costs incurred incident making, press work, binding, and the end to recruitment of a new employee have been products produced by such processes), dis- allowed either as an allocable direct or indi- tribution, promotion, mailing, and general rect cost, and the newly hired employee re- handling.Publication costs also include page signs for reasons within his control within . charges in,professional publications. twelve months after being hired, the organi- b.If these costs are not identifiable with a zation will.be required to refund or credit particular cost objective, they should be al- such relocation costs to the Federal Govern- •located as indirect costs to all benefiting ao- ment. tivities of the non-profit organization. 42. Relocation costs. a. Relocation costs c. Page charges for professional journal are costs incident to the_permanent change publications are allowable as a necessary of duty assignment (for an indefinite'period part of research costs where: or, for a stated,period of not less than 12 (1) The research papers report work sup- months)of an existing employee or upon re- ported by the Federal Government:and cruitment of a new employee. Relocation (2) The charges are levied impartially on costs are allowable,subject to the limitation all research papers published by the journal, described in subparagraphs 42.b, c, and d of whether or not by federally-sponsored au- this appendix,provided that: thors. (1) The move is for the benefit of the em 39. Rearrangement and alteration costs. ployer. Costs incurred for ordinary or normal rear- (2) Reimbursement to the employee is in rangement and alteration of facilities are al- accordance with an established written pol- lowable. Special arrangement and alteration icy consistently followed by the employer. costs incurred specifically for the project are (3)The reimbursement does not exceed the • allowable with the prior approval of the employee's actual (or reasonably estimated) awarding agency. expenses. 90. Recon'version costs. Costs incurred in b. Allowable relocation costs for current the restoration or rehabilitation of the non- employees are limited to the following: profit organization's facilities to approxi- (1) The costs of transportation of the cm • - mately the same condition existing imme- ployee, members of his immediate family diately prior to commencement of Federal and his household, and personal effects to awards, loss costs related to normal wear the new location. and tear,are allowable. (2)The Costs of finding a new home, such 41.Recruiting costs.a. Subject to subpara- as advance trips by employees and apouses to • .graphs 41.b, c, and d of this appendix,'and locate living quarters and temporary lodging provided that the size of the staff recruited during the transition period,up to maximum and maintained is in keeping with workload period of 30 days, including advance trip requirements, costs of"help wanted" adver-. time. tising, operating costs of an employment of- (3)Closing costs, such as brokerage, legal. lice necessary to secure and maintain an and appraisal fees, incident to the disposi- adequate staff,costs of operating an aptitude tion of the employee's former home. These and educational testing program, travel costs, together'with those described in sub- costs of employees while engaged in recruit- paragraph 42.b.(4) of this appendix, are lim- ing personnel, travel costs of applicants for ited to 8 percent of the sales price of the em- interviews for prospective employment, and ployee's former home. • relocation costs incurred incident to recruit- (4) The continuing costs of ownership of ment of new employees,are allowable to the the vacant former home after the settlement extent that such costs are incurred pursuant: or lease date of the employee's new psrma- to a well-managed recruitment program. nent home,such as maintenance of buildings • Where the organization uses employment and grounds(exclusive of fixing up expenses), agencies, costs that are not in excess of utilities,taxes,and property insurance. standard commercial rates for such.services (5) Other necessary and reasonable ex- are allowable. penses normally incident to relocation, such i 1_. q' 1 . i Pt. 230,App. B 2 CFR Ch. I1 (1-1-12 Edition) j'j l However, these costs are allowable as direct. below. They are to be used in conjunction, costs,with prior approval by awarding agen- with the other provisions of this appendix in cies, when they are necessary for the per- termination situations. formance of Federal programs. a. The cost of items reasonably usable on j 46. Specialized service facilities, a. The the non-,profit organization's other work costs of services provided by highly complex shall not be allowable unless the non-profit' .or specialized facilities operated by the non- organization submits evidence that it would i profit organization, such an'computers,wind not retain such items at cost without sus tunnels,and reactors are allowable,provided taming a loss. In deciding whether such {` the charges for the services meet the condi- items are reasonably usable on other work of !- tions of either paragraph 96 b. or c. of.this the non-profit organization, the awarding appendix and, in addition,take into account agency should consider the non-profit orga- any items of income or. Federal financing nization's.plans and orders for current and that qualify as applicable credits under sub- scheduled activity. Contemporaneous pur- paragraph A.5.of Appendix A to this part, chases of common items by the non-profit b..The costs of such services, when mate- organization shall.be regarded as evidence rial, must be charged directly to applicable that such items arereasonably usable.on the awards based on actual usage of the services non-profit organization's other work. Any t on the basis of a schedule of rates or estab acceptance of common items as allocable to 1 lished methodology that does not discrimi- the terminated.portion of the Federal award , nate against federally-supported activities of shall be limited to the extent that the quart- #.. the nonprofit organization, inoluding usage titles of such items on hand,in transit, and ( ' by the non-profit_organization for internal on order are in.excess of the reasonable }. purposes, and is designed to recover only the quantitative requirements of other work': • t,. aggregate costs of the services. The costs of b.1f in a.:particular case, despite all rea- 4. each service shall consist normally of both sonable efforts by:the non-profit organiza- its direct costs and its allocable share of all tion, certain coats cannot be discontinued Sd indirect costs. Rates shall be adjusted at immediately after the effective date of ter- i least biennially, and shall take into consid- mination,such costs are generally allowable i eration over/under applied costs of the pro- within the limitations set forth in this ap- i' vious period(s), pendix, except that any such costs con- 1 c. Where the costs incurred for a service tinning after termination due to the neg- are not material, they may be allocated as ligent or willful failure of the non-profit or- i indirect costs, ganization to discontinua such costs shall be R d. Under some extraordinary cir- unallowable. cumstances, where it is in the best interest a. Loss of useful value of special tooling, 1, of the Federal Government and the institu- machinery,and is generally allowable if: 4 tion to establish alternative costing arrange- (1)Such special tooling,special machinery, rpents, such arrangements may be worked or equipment is not reasonably capable of out with the cognizant Federal agency. use in the other work of the non-profit orga- 47.Taxes.a.In'general,taxes which the or- nization, ganization is required to pay and which are (2)The interest of the Federal Government paid or accrued in accordance with GAAP, is protected by transfer of title or by other 1. and payments made to local governments in means deemed appropriate by the awarding i lieu of taxes which are commensurate with agency,and the local government services received.are "(3)The loss of useful value for any one ter- i allowable, except for taxes from which ex- minated Federal award is limited to that i emptions are available to the organization portion of the acquisition cost which hears. directly or which are available to the organi- the same ratio to the total acquisition cost j zation.based on an exemption afforded the as the terminated portion of the Federal tE Federal Government and in the latter case award bears to the entire terminated Federal i when the awarding agency makes available award and other Federal awards for which the necessary exemption certificates,special the special tooling, special machinery, or ! assessments on land which represent capital equipment was acquired. . 1 improvements,and Federal..income taxes. d. Rental costs under unexpired leases are b.Any refund of taxes,and any payment to, generally allowable where clearly shown to the organization of interest thereon, which have been reasonably necessary for the per- were allowed as award costs,will be credited formance of the terminated Federal award 1 either as a cost reduction o'r cash refund, as less the residual value of such leases,if: appropriate,to the:Federal Government. '(1)The amount of such rental claimed does 48. Termination costs applicable to spon- not exceed the reasonable use value of the sored agreements. Termination of awards property leased for the period of.the Federal generally gives rise to the incurrence of award and such further period as may be rea- costs, or the need for special treatment of sonable,and costs, which would not have arisen had the (2) The non-profit organization makes all Federal award not been terminated. Cost reasonable efforts to terminate, assign, set- principles covering these items are set forth tle, or otherwise reduce the cost of such 206 I• ( I 1 i i w • OMB Circulars and Guidance Pt.230,App.B I. lease.There also may be included the cost of field in which the employee is now working . alterations of such leased property,provided or may reasonably be expected to work, and such alterations were necessary for the per- are limited to: formance of the Federal award, and of"roa- (1)Training materials. • sonable restoration required by the provi- ;(2),Textbooks. sions of the lease. (3)Fees charges by the educational institu- e. Settlement expenses including .the.fat, tion. lowing are generally allowable: (4) Tuition charged by the educational in- (1)Accounting, legal, olerical, and similar stitutien or, in lieu of tuition, instructors' I . costs reasonably necessary for; salaries and the related share of indirect j. (a) The preparation and presentation to costs of the educational institution to the 1 the awarding agency of settlement claims extent that the sum thereof is not in excess and supporting data with respect to the ter- of the tuition which would have been paid to minated portion of the Federal award,unless the participating educational institution.. the termination is for default(see §215.61 of .(5),Salaries and related costs of instructors t 2 CFR part 215(0MB Circular A-110));and who are employees of the organization. (b)The termination and settlement of sub'. (6) Straight-time compensation of each awards. employee for time spent-attending classes (2)Reasonable costs for the storage,trans- during working hours not. in excess of 156 .porration, protection, and disposition of hours per year and only to the extent that property provided by the Federal Govern- circumstances do not permit the operation of. ment or acquired or produced for the Federal classes or attendance at classes after regular 1 • award, except when grantees or contractors working'hours; otherwise, such compensa- are reimbursed for disposals. at a predeter- tion is unallowable. mined amount in accordance with §21532 c.Costs of tuition,fees,training materials, t through 215.37 of 2 CFR part 215 (OMB Cir- and textbooks (but not subsistence, salary, calm;A-110). or any other emoluments) in connection :(3) Indirect.costs related to salaries'and with full-time education,including that pro- wages incurred as settlement expenses. in vided at the organization's own facilities, at I subparagraphs 48.e.(1) and (2) of this appen- a post-graduate(but not undergraduate)col- dix. Normally, such indirect costs shall be lege level, are allowable only when the i limited to fringe benefits, occupancy cost, course or degree pursued is related to the I and immediate supervision. field in which the employee is now working f. Claims under sub awards, including the or may reasonably be expected to work, and 1 allocable.portion of claims which are corn- only where the costs receive the prior ap- mon to the Federal award,and to other work proval of the awarding agency. much costs t of the non-profit organization are generally are limited to the costs attributable to a i allowable, total period not to exceed one school year for ?g An appropriate share of the non-profit or- each employee so trained. In unusual cases 1 ganization's indirect expense may be alto- the period may be extended, cated;to the amount of settlements with sub- d.•Costs of attendance of up to 16 weeks per contractors and/or subgrantees, provided employee per year at specialized programs • that the amount allocated is otherwise con- specifically designed to enhance the effec- sistent with the basic guidelines contained tiveness of executives or managers or to pre- i in Appendix A.The indirect expense so allo- pare employees for such positions are allow- j cated shall exclude the same and similar able. Such costs include enrollment fees, costs claimed directly or indirectly as settle- training materials, textbooks and related • ment expenses. charges, employees' salaries, subsistence. 49. Training costs. a. Costs of preparation and travel. Costs allowable under this para- and maintenance of a program of instruction graph do not include those for courses that including but not limited to on-the-job, are part of a degree-oriented curriculum, classroom, and apprenticeship training, de- which are allowable only to the extent set signed to increase the vocational effective- forth in subparagraphs b and c. 1 ness of employees, including training mate- e. Maintenance expense, and normal depre- 1 rials,textbooks,salaries or wages of trainees elation.or fair rental, on facilities owned or t (excluding overtime compensation which leased by the organization for training pur- might arise therefrom),and(i)salaries of:the poses are allowable to the extent set forth in director of training and staff when the train- paragraphs 11.27,and 50 of this appendix. i ing program is conducted by the organize- f. Contributions or donations to edu- 1 Lion; or(ii) tuition and fees when the train- national or training institutions, including ing is in an institution not operated by the the donation of facilities or other properties, brganization,are allowable. a b. Costs of part-time education, at an un- able.ndscholarships or fellowships, are unallow- 1 dergraduate or post-graduate college level, g.. Training and education costs in excess I including that provided at the organization's of those otherwise allowable under subpara- own facilities, .are allowable only when the graphs 49.b and'c of this appendix may be al- course or degree pursued is relative to the lowed with prior approval of the awarding • 207 I I 1 - i Pt.230,App. C 2 CFR Ch. II (1-1-12 Edition) agency. To be considered for approval, the transportation savings;or offer accommoda- organization must demonstrate that such tions not reasonably adequate for the tray- costs are consistently incurred pursuant to eler's medical needs. The non-profit organi- (. an established training and education pro- zation must Justify and document these con- gram,and that the course or degree pursued ditions on a case-by-case basis in order for is relative to the field in which the employee the use of first-class airfare to be allowable is now working or may reasonably be ex- in such.cases. petted to work. (2) Unless a,pattern of avoidance is de- '50. Transportation costs. Transportation tented, the Federal Government will gen • - costs include freight, express, cartage, and erally not question a non-profit organize- t• postage charges relating either to goods pur- tion's determinations that customary stand- chased, in process, or delivered. These costs and airfare or other discount airfare is'un- are allowable. When such costs can readily available for.specific trips if the non-profit be identified with the items involved, they organization can demonstrate either of the may be directly charged as transportation following: that such airfare was not avail- costs or added to the cost of such items (see able in-the specific case; or that it is the paragraph 28 of this appendix).Where identi- non-profit organization's overall practice to fication with'the materials received cannot make routine use of such airfare. readily be made,transportation costs may be d. Air travel by other than commercial charged to the appropriate indirect cost_ o— so counts if the organization follows a con- carrier.zation-owned, -1 travel or-chanon-rtered aircraftrrat sistent,equitable procedure in this respect. include the cost-leased,of -chartered include the of lease, charter, operation 51.Travel costs. (including personnel costs),maintenance,de- a. General. Travel costs are the expenses predation, insurance, and other related for transportation,lodging, subsistence, and costs.The portion of such costs that exceeds related items incurred by employees who are the cost of allowable commercial air travel, in travel status on official business of the as provided for in subparagraph] c.,is unal- non-profit organization. Such costs may be Towable, •charged on an actual cost basis, on a per diem or mileage basis in lieu of actual costs e. Foreign travel. Direct charges for for- incurred, or on a combination of the two, eign travel costs are allowable only when the provided the method used is applied to an en- travel has received.prior approval of the awarding agency. Each separate foreign trip'• tire trip and not to selected days of the'trip, and results in charges consistent with those must receive such approval. For purposes of normally allowed in like circumstances in this provision, foreign travel"includes any the non-profit organization's non-federally- travel outside Canada, Mexico, the United sponsored activities. States,and any United States territories and • b.Lodging and subsistence. Costs incurred possessions. However, the term. "foreign by employees and-officers for travel, inelud- travel"for a non-profit organization located • ing costs of lodging, other subsistence, and in .a foreign country means travel outside incidental expenses, shall be considered rea- that country, sonable and allowable only to the extent 52. Trustees. Travel and subsistence costs such costs do not exceed charges normally of trustees (or directors) are allowable.The allowed by the non-profit organization in its costs are subject to restrictions regarding regular operations as the result of the non- lodging,subsistence and air travel costs pro- profit organization's written travel policy. vided in paragraph 51 of this appendix. In the absence of an acceptable,written non- profit organization policy regarding travel APPENDIX C TO PART 230—NON-PROFIT costs., the rates and amounts established ORGANIZATIONS NOT SUBJECT TO under subchapter I of Chapter 57, Title 5, THIS PART United States Code("Travel and Subsistence Expenses; Mileage Allowances"), or by the 1. Advance Technology Institute (ATI), Administrator of General Services, or by the Charleston,South Carolina President(or his or her designee) pursuant 2. Aerospace Corporation, El Segundo, Cali- to any provisions of such subchapter shall fornia apply to travel under Federal awards(48 CFR 3. American Institutes of Research (AIR), 21.205-46(a)), Washington DC c.Commercial air travel. (1) Airfare costs 4. Argonne National Laboratory,Chicago,Il- in excess of the customary standard commer- lints cial airfare (coach or equivalent), Federal 5. Atomic Casualty Commission, Wash- Government contract airfare (where author- ington,DC ized and available),or the lowest commercial 6, Battelle Memorial Institute, discount airfare are unallowable except when Headquartered in.Columbus,Ohio such accommodations would: require'circui- 7. Brookhaven National Laboratory. Upton,,. tons routing;require travel during unreason- New York able hours;excessively prolong travel;result 8. Charles Stark Draper Laboratory, Incor- in additional costs that would offset the porated,Cambridge,Massachusetts 208- ii 4- OMB Circulats and'Guidance: Pt.230, App.C 1.. 9.CNA Corporation(CNAC),Alexandria,Vir- 22. Rand Corporation, Santa Monica; Cali- i gnia fornia 10. 'Environmental Institute of Michigan, 23. Research Triangle Institute, 4eaeRrdh 1. Ann Arbor,.Michigan Triangle Park,North Carolina il 114 Georgia Institute of Technology/Georgia 24. Riverside Research Institute, New York, • Teoh Applied Research Corporation/Geor- New York' i gia Teoh Research Institute, Atlanta, 25. South Carolina Research Authority ` Georgia (SCRA),Charleston,South Carolina �.. 12. Hanford.Environmental Health Founda- 26. Southern Research institute, :Et- , tion,Richland,Washington mingham,Alabama h 13.IITResearch Institute,Chicago,Illinois 27. Southwest Research Institute, San Anto- ,t, 14. Institute of Gas Technology, Chicago, Il- nio;Texas ,, linois 28.SRI International,Menlo Park,California 15. Institute for Defense Analysis, Alexan- 29. Syracuse Research Corporation, .Syra- dria,Virginia cuse,New York 16.LMI.,McLean,Virginia 30.Universities Research Association, Incor- 17,.Mitre Corporation, Bedford Ofk`AfijAklidl porated (National Acceleration Lab), Ar- t setts gonne,Illinois'. it 18. :Mitretek Systems, Inc.. Falls .Church., 31,Urban Institute,Washington DC Virginia 32. Non profit insurance companies, such as F, 19.National Radiological Astronomy Observ- Blue Cross and Blue Shield Organizations atory,Green Bank,West Virginia 33. Other, non-profit organizations as nego- 20. National Renewable Energy Laboratory, timed with awarding agencies Golden,Colorado I. 21. Oak Ridge Associated Universities,`ate Ridge,Tennessee PARTS 231-299.[RESERVED] , , i 1 , . { II i t . i • t OMB Guidance §200.501 . 5701-11, ("Travel and. Subsistence Ex- Subpart F—Audit Requirements i. penses; Mileage Allowances"), or by the Administrator of general Services, .0l1f}t1 A1, or by the President(or his.Or.her des- ignee) pursuant to any provisions of §200.500. Purpose. 1. such subchapter must apply to travel This part Beta forth standards for.ob- under Federal. awards (48 OFR 81.205-. taming oonaistenay• and uniformity 48(a)). among Federal agencies for the audit , (d) Commercial air travel. (1) Airfare of non-Federal entities expending Fed- costs in excess of the basic least expen- eral awards. sive unrestricted accommodations • class offered by commercial airlines Avnzs . are unallowable except when such ao- §200.502 Auditrequirements. commodations would: (i)Require eirouitoue routing; (a)Audit required.A non-Federal anti • - .(ii) Require travel during unreason- ty that expends$750,000 or more during able hours; the non-Federal entity's fiscal year in (iii)Excessively prolong travel; Federal awards must have a single or (iv) Result in additional costs that program-specific audit conducted for would offset the transportation sav_ that.year.in accordance with the provi- inga;or scone of this part,. .(v)Offer accommodations not reason- (b)Single audit.A non-Federal entity ably adequate for the traveler's mad- • that expends $760,000 or more: during caul needs. The non-Federal entity the non-Federal entity's fiscal,.year in Federal awards must have 'a single I. must justify and.document these oondi- audit conducted in accordance with •tions on a case-by-case basis in order §200.514 Scope of audit except when-it• for the-use of first=class or business- elects to have a program-speoifio audit1. class airfare to be allowable in .such. oond,ncted in accordance with Para- i cases, gra,ph(c)of this section. • (2) Unless a pattern of avoidance.is (o) Program-specific audit election. detected,-the Federal:government will when an auditee .expends Federal. generally not question a non-Federal awards under only-One Federal pro- entity's determinations that ' cue." gram(exoluding R&D)and the Federal. tomary standard airfare or other dis- program's statutes, regulations,or the count airfare is unavailable for specific terms and conditions' of the Federal. trips if the non-Federal entity' can award do not require a'financial state demonstrate that such airfare was not ment audit of',the auditee, the auditee. I • available"in.the specific case. may elect to.have 'a program-specifio (e)Air travel.by other than commercial audit conducted, in'. accordance with i .carrier. Costs Of travel by,non-Federal §200.807 Program-specific audits.A pro- , entity-owned, -leased, or chartered gram-specific audit may not be elected aircraft include the cost of lease,char- for R&D unless all of the Federal ter, operation (incl'uding personnel awards•expended *ere received from i. costs), maintenance, depreciation, in- the same Federal'agency, or the same surance, and other related costs. The Federal agency and the same pass- portion of such costs that exceeds the through entity,and.that Federal agen- cost of airfare as provided for in pars oy� or, pees-through entity in the case graph (d) of this section, is unailow- of a subraoipient, approves in advance able. a program-specific audit, (d)Exemption.when Federal awards ex- t §200.475 Trustees. pended are less than S750,000.Anon-Fed- eral entity that expends less than Travel and subsistence costs of trust- $750,000 during the non-Federal entity's t ass(or directors)at IEEs and nonprofit fiscal year in Federal awards is exempt, tl organizations are allowable. See also from Federal audit requirements for . §200.479 Travel costs. that year, except as noted in §200.603 Relation to other audit requirements, P 1 • • • §200.502 2 CFR Ch:1I(1-1-14 Edifion) but records must be available for re- sponsibility.Methods to ensure oomph- view or audit by appropriate officials awe for Federal awards made to`for- 1' of the Federal agency,pass-through en- profit subrecipients may include pre- • tity, and Government Accountability award audits, monitoring during the Office(GAO). agreement,and post-award 'audits. See (e)Federally Funded'Research and De- also §200.331 'Requirements for pass- velopment Centers (FFRDC). Manage- through entities. ment of an auditee that owns or oper- ates a FFRDC may elect to treat the §200.802 Basis 'far deter stodmg tiiid �' FFRDC as- a separate entity for•pur- oral awardsexiaeaded:; poses of this part. (a) Determining Federal awards ex- (f) Subreclptents and Contractors. An pended. The determination of when a auditee may simultaneously be a,re- Federal award is expended should be cipient, a' subrecipient, and a con- based on when the activity related to tractor. Federal awards expended as a the Federal award occurs. Generally, recipient or a subreoipient aro subject the activity pertains to events that re- to audit under this part.The payments quire the non-Federal entity to comply • received for.goods or services provided with;Federal.Statutes,regulations, and ass contractor are not Federal awards, the terms and conditions of Federal • Section§200.330 Subreoiplent and oon- awards, such as: expenditure/expense , .'tractor determinations should be con- transactions associated with awards in- sidered in determining whether pay- eluding. grants, cost-reimbursement .manta oonstitute a Federal award'or a contracts under the FAR, compacts payment for goods or services provided with Indian Tribes, cooperative agree- as.a contractor. .manta, and direct appropriations; the • (g) Compliance responsibility for con- disbursement of funds to subrecipients; tractors. In most oases, the auditee's the use of loan proceeds under'loan and compliance responsibility for contras- loan guarantee programs;the receipt of . tors is only.to ensure that the procure- property; the receipt of surplus prop- ment, receipt, and payment for goods erty;'the receipt or use of program in- and services comply with Federal stat- come; the distribution or use of food utes, regulations, and the terms and commodities;, the disbursement of conditions of Federal awards, Federal amounts entitling the non-Federal en- award compliance requirements nor- tity to an interest subsidy;and the pe- molly do not pass through to contras- riod when insurance is in force. tors. However-, the auditee is reapon- (b) Loan and.loan guarantees (loans). • Bible for ensuring compliance for pro- Since the Federal government is at ourement transactions which are struo- risk for loans until the debt is repaid, tured such that the contractor is re-. the'following guidelines must be used sponsible for program compliance or to calculate the value of Federal the contractor's records must be re- awards expended under.loan programs, viewed to determine program oomph- except as noted in paragraphs (a) and ance: Also, when these procurement (d)of this section: transactions relate to a major pro- (1) Value of new loans made or re- gram, the scope of the audit must in- calved during the audit period;plus elude determining whether these trans- (2)Beginning of the audit period bal- i. actions are in compliance with Federal ance of loans from. previous years for statutes, regulations, and the terms which the Federal government imposes and conditions of.Federal awards. continuing oompliance requirements; (h) For profit subreciptent. Since this plus part does not apply.to for-profit sub- (3)Any interest subsidy, cash, or ad, recipients, the pass-through entity is ministrative cost allowance received. responsible for establishing require- (o)Loan and loan guarantees(loans)at • • ments, as necessary, to ensure oomph- IfiEs.When loans are made to students ance by for-profit subreoipients. The of an liiE but the 1HE does not make • agreement with. the for-profit sub- the loans,then only the value of loans recipient should describe applicable made daring the audit period must be compliance requirements and the for- considered Federal awards expended in profit subrecipient's compliance re- that audit period.The balance of loans 1.72 • • OMB Guidance §.200 503 • for previous audit periods is not. in- $200.503 Relation to other audit,re. eluded.as Federal awards expended be- quiremente. • cause the lender accounts for the prior. (a)An,audit conducted in accordance balances. (d) Prior loan and loan guarantees With this part must be in lieu of,any fi- (Ioans). .Loane,`the proceeds of which nanoiai audit of Federal awards which were 'received and expended in.prior anon-Federal.entity is required,to un- years, are not considered• Federal dergo under-,any other.Federal 'statute awards expended udder this part when or're n1ation.To the extent that.such the Federal statutes, regulations, and audit provides.a Federal agency with the terms and conditions of Federal the information It requires to carry awards pertaining to such loans impose. out its responsibilities under...Federal 1tg continuing compliance require • statute or'regulation,a Federal'agenoy mends otherthan to repay the ioaDs.• must rely upon and'use that informs- (e)Endowment,funds.The cumulative tion' balance of Federal:awards•for endow- (b)Notwithstanding subsection.(a),a meat 'funds that are federally re- Federal agency;Inspectors General, or . strioted are considered Federal awards GAO may oonduot or arrange for addi .expended in.each audit.period in which tional audits:which are..necessary to. • the funds are still restricted. carry out. its responsibilities under • (f) Free rent. Free rent received, by Federal statute or regulation.The pro- itself is not considered a Federal award visions of this.part do not authorize expended under this part.However,free any non-Federal entity to constrain,in rent received as part of. a Federal any manner;such.Federal agency from award to carry out a.Federal program carrying out or arranging-for such ad- must be included in.determining Fed- ditional audits,except that the Federal oral awards expended and. subject to agency.must plan ranch audits to not be audit under this part, duplioative of other audits of.Federal. (g) Valuing non-cash assistance...Fed- awards.Frior to-oommencing..sne an oral non-cash assistance,,such as free audit, the Federal agency or pass- rent, food commodities, donated prop- through entity.must review the FAO erty,.or donated surplus property,must for recent audits submitted by:the non- be valued at fair.market value,at the Federal entity, and to the extent such time..of.receipt or the.assessed value audits meet a.Federal:agency.or pass4 provided.by the Federal;agency. through entity's needs,-the Federal (h),Medicare.Medi1oare payments to a agency or-pass-through entity must non-Federal entity .for providing -pa- .rely upon;and'use•such audits.Any ad- tient care services to Medicare-eligible ditional audits must be. planned and. • individuals are not considered Federal performed in such a way•as to build awards expended ander.this part: upon work performed, including; the (I)Medicaid, Medicaid payments to a audit documentation, sampling, and subrecipient for providing;patient care testing already performed, by other• services to Medicaid=eligible individ- auditors. uals are not considered Federal awards (c)The provisions of this.part do not expended under this part unless.a state limit the authority of Federal agencies ' requires the funds to be treated as Fed- to conduct, or arrange for the conduct eral awards expended because reins- of, audits and evaluations of Federal bursement is on a cost-reimbursement awards,nor limit the authority of any basis. Federal agency Inspector General or (j) Certain loans provided:by the Na- other Federal official.For example,re- tional Credit Union Administration. For quirements that may be applicable purposes of this part,loans made from under the FAR or CAS.and the terms the National Credit Union Share Incur- and conditions of a cost-reimbursement anus Fund and the Central Liquidity contract may include additional appli- • Facility that are funded by contribu- cable audits to be conducted or ar- tions from insured non-Federal entities ranged for by Federal agencies. are not considered Federal awards ex- (d) Federal agency to pay for adds- pended. tional audits. A Federal agency that ifia • • §200.504 2 CFR Ch.11(1-1-14 Edition) conducts or arranges for additional au- go its audits pursuant to this part bi., dits must, consistent with other appli- ennially. cable Federal statutes and regulations, arrange for funding the full post of §200.505 Sanotions. such additional audits. In oases of continued inability or un- (e) Request for a program to be au- willingness to have an audit conducted • dited as a major program. A Federal in accordance with this part,.Federal awarding agenoy-may request that an agencies and pass-through entities. auditee have a particular Federal pro- must take appropriate,action as pro- gram audited as a.major program in vided in §200.838 Remedies for non- • lieu of the .Federal awarding agency compliance. oonduoting or arranging for the addi- - tional audits. To allow ;for planning, §200.508 Audit costs. such requests should be made at least ' 180 calendar days prior to the end of Bee§200.425 Audit services. the fiscal year to be audited. The §200607 Program-specific • audits°, after consultation with its audits,, auditor, should promptly respond to (a) Program-specific audit guide avail- suoh a request'by informing the Fed- able. In many cases,a program-specific eral awarding agenoy whether the pro- audit guide'will be available to provide • • gram would otherwise be audited as a specific guidance to the auditor with major program using the risk-based respect to internal controls, compli- audit approach described in §200.518 ance requirements, suggested audit Major program determination and, if procedures, and audit reporting re- not, the estimated incremental cost. •quirements. A listing of current pro • - The Federal awarding agency must gram-specific audit guides can be found then promptly confirm to the auditee in the compliance supplement begin- whether it wants the program audited ning.,with the 2014 supplement inolud- as a major,program. If the program is big Federal awarding agency` contact to be audited as a major program based information and a Web site where a upon this Federal awarding agenoy re- copy of the guide can be obtained. quest, and the Federal awarding agen- When a current program-specific audit cy agrees to pay the full incremental guide is available, the auditor .must costs, then the auditee must have the .follow GAGAS and the guide'whea per- program audited as a major program.A forming a program-specific audit. pass-through entity may use the provi- (b) Program-specific audit guide not sloes of this paragraph for a sub- available. (1) When a_.program-specific reoipient. audit guide is .not available, the §ZOO,SO4 Frequency of audits, • auditee and auditor must have-bass- pally the same responsibilities for the Except for the provisions for biennial Federal program.as they•would have audits provided in paragraphs (a) and for an audit of a major program in a (b) of this section, audits required by single audit. • this part must be performed annually. (2) The auditee must prepare the fi- Any biennial audit must cover both nanolal statement(s) for the Federal years within the biennial,period. program that includes, at a minimum, (a) A state, local government,or In- a schedule of expenditures of Federal dian tribe that is required by constitute• awards for the program and notes that tion or statute,in effect on January 1, describe the significant accounting 1987, to undergo its audits less fre- policies used in preparing the schedule, quently than annually,is permitted to a summary schedule of prior audit find- undergo its audits pursuant to this legs consistent With the requirements part biennially.This requirement must of §200.511 Audit findings follow-up, still be in effeot.for the biennial period. paragraph (b), and a corrective action (b) Any nonprofit organization that plan consistent with the requirements • had biennial audits for all biennial pe- of §200.511 Audit findings follow-up., riods ending between July 1, 1992, and paragraph(c). January 1, 1995, is permitted to under- (3)The auditor must: lit • • i • I. • 1 1 . 1 � 1 • OMB Guidance §200.507 • (i) Perform.an audit of the financial material effect on Cite Federal'ire- statements) for the Federal program gram;and in accordance with GALAS; (iv)A schedule of findings and.cues • - • (ii)Obtain an understanding of inter- tioned costs for the• Federal program na1 controls and perform tests of inter- that•includes a summary of the audi- nal controls over the Federal program tor's results relative to. the Federal consistent with the requirements of program.in a format consistent with §200.514 Scope of audit, paragraph.:(c) §200.515 Audit reporting, paragraph for a major program; (d)(1)and•findings and questioned costs (iii)Perform procedures to determine consistent with the requirements of whether the auditee.has complied with §200.515 Audit reporting, paragraph Federal statutes, regulations, and the (d)(3). terms and conditions of Federal awards; (c) Report submission for program-spe- that'could have a direct and material cific audits. (1)The audit;must be corn- effect on the Federal program con- pleted and the reporting required by sistent with the requirements of paragraph(c)(2)or(o)(3)of this section §200.514.;Scope of audit, paragraph (d) submitted within the earlier of 30 cal • - for a_major program;. endar days.after receipt of the audi- (iv)Follow np on prior audit findings, tor's report(s), or nine months after perform procedures to assess the rear the end of the audit period, unless a sonableness of.the summary sohedtjle different period is specified in a pro- of prior audit findings prepared by the gram-speoific audit guide. Unless re- auditee in accordance with the require- stricted.by Federal law or regulation, meats of§200.511 Audit findings follow- the auditee must make report copies • up,and report,as a current year audit available for public, inspection. finding, when the auditor concludes Auditees and auditors must ensure that the summary schedule of prior that their respective parts of the re- audit findings materially misrepre- porting package do not include pro- sente the status of any prior audit find- noted personally identifiable informs- ing;and tion. (v) Report any audit findings con- (2) When a program-specific audit sistent with. the requirements of guide is available, the auditee must §200.516 Audit findings. electronically submit to the FAC the (4) The auditor's report(s)play be in data collection, form prepared in so- the form of either combined or sepa- oordance with §200.612 Report eubmis- rate reports and.may be organized dif- sion, paragraph (b), as applicable to a ferently from the manner presented in program-specific audit,and the report,- this section. The auditor's reports) ing required by the program-specific must state that the audit was con- audit guide. ducted in accordance with this part (3)., When a:program-specific audit and include the following: guide is,not available, the reporting (1) An.opinion(or disclaimer of opin- package for a program-specific audit ion) as to whether the financial state- must consist of the financial state- ment(s)of the Federal program is pre- mental of the Federal program,a sum- seated fairly in all material respects in mary schedule of prior audit findings, accordance with the stated accounting and a corrective action plan as de- policies; scribed in paragraph(b)(2) of this see- (ii) A report on internal control re- tion, and• the auditor's report(s)'de- lated to the Federal program, which soribed in paragraph (b)(4) of this en- must describe the scope of testing of• tion.The data collection form prepared internal control and the results of the in accordance with§200.512 Report sub- tests; mission,paragraph(b),as applicable to (iii)A report on compliance which in- a program-spegifio audit, and one copy eludes an opinion (or disclaimer of of this reporting package must be else- opinion) as to whether the auditee.. tronioally submitted to the FAO. complied with laws, regulations, and (d) Other sections of this part may the terms and conditions of Federal 'apply.Program-specific audits are sub- awards which could have a direct and jeot to: 175 • §200.508 2.CFR Ch. II(1-1-14 Edition) (1)200.500 Purpose through 200.503 Re- Subpart D- Post Federal Award Re- lation to other audit requirements, quirements of•this part or the FAR•(48 paragraph(d); OFR part 42), as applicable. When.pro- (2) 200.504 Frequency of audits curing audit.services, the objeotive'is through 200.506 Audit costs; to obtain highrquality" audits. In re- ' (3) 200.508 Auditee• responsibilities questing proposals for audit services;. through 200.509 Auditor selection; the objectives and soope of the audit• :(4)200.511 Audit findings follow-up; must be made clear and the non-Fed- (5). 200.512..Report submission, pare oral entity must request a copy of the graphs(e)through(h); audit organization's peer review report (6)200.513 Responsibilities; which the auditor is required to pro'. (7) 200.516 Audit findings through vide under GAGAS. ]!'actors to be con- • 200.517 Audit documentation; sidered in evaluating each.proposal for (8)200.521 Management decision,and audit services include the responsive • - (8)Other referenced provisions of this ness to the request for proposal, rel- part unless contrary to the provisions avant experience,' availability of staff of this section, a program-specific with professional qualifications and audit guide, or program statutes and teohnloai abilities, the results of•peer regulations. and, external quality (control reviews, • and price. Whenever possible, the • •;Atf>ii1.1618"; au.ditee must Make positive efforts to utilize small businesses, minority- §200.648. Auditee responsibilities,-• • owned firms,and vvomen's business en- The auditee must: terprisea,in proouring audit services as (a) Procure or otherwise arrange for stated in §200.821 Contracting with • the audit required by this part in ea- email and minority businesses, worn- oordanoe with §200.509 Auditor selec- en's business enterprises, and labor" Lion, and ensure it is properly per- surplus area firma, or the.FAR(48 CFI!, formed and submitted when duo in ac- part 42),as applicable. eordance with §200.512 Report.subrais- (b)Restriction on.auditor preparing In- slon. direct cost proposals. An. auditor who (b) Prepare appropriate financial prepares the indtreot cost proposal or statements, including the schedule•of cost allocation plan may not"also be se expenditures of Federal awards in ao- leoted to perform the audit required by .00rdanoe with§200.510 Financial state- this part when the indirect costs recov-: ments. ered by the auditee during the prior • (o)Promptly follow up and take oor- year'exceeded$1 million. This restria- reotive action.on audit findings, in- tion applies to the base year used in eluding preparation of a summary the preparation of the.indirect cost schedule of prior audit findings and a proposal or coat allocation plan and corrective action plan in accordance any subsequent years in which the re- with §200.511 Audit findings follow-up, suiting indirect post agreement er cost paragraph (b) and §200.511 Audit find- allocation plan is used"to reoover costs. ings follow-up, paragraph (c), respeo- (a) Use of Federal auditors. Federal tively. auditors may perform all or part of the • (d)Provide the auditor-with access to work required under this part if they personnel, accounts,_ books, records, comply Sully with the requirements of supporting documentation, and other this,part. information as needed for the auditor to perform the audit required by this *200.510 Financial statements. part. • (a) Financial statements. The auditee *200.509 • Auditor selection must prepare financial statements that • reflect its financial position, results of (a) Auditor procurement. In procuring" .operations or changes in net assets, audit services, the auditee must follow and, where appropriate, gash flows for • the procurement standards prescribed the fiscal year audited. The financial by the Procurement Standards in statements must be for the same orga- §§200.317 Procurement by states nizational unit and fiscal year that is through 20.326 Contract provisions of chosen to meet the requirements of . lG' • .. t. i ,. OMB Guidance. §200.511 - this part.However,non-Federal entity- the schedule the balances outstanding wide financial statements may also in- at the end of the audit period. This is is_ elude departments, agencies,and.other in addition to including the total.Fed• organizational units that have separate oral awards expended for loan or. loan i • audits in •accordance with •§2O0.514 guarantee programs in the schedule. Scope:of audit,paragraph(a) and pre- (6) Include notes that describe that • pare.separate financial statements. significant acoduntiag policies used in (b)Schedule of expenditures of Federal preparing the schedule, and pate awards. The auditee must also prepare whether or not the non-Federal:entity 1 a schedule of expenditures of Federal elected to use the 10%de minimie oust awards for the period covered by the rate as covered in §200.414 Indirect • auditee's financial,.statements which (F&A)costs. 3 • must include the total Federal awards expended as determined in accordance §200.611 Audit findings follow-up. with §200.502 Basis 'for determining (a)General.The auditee is responsible F Federal awards expended.While not re- for'follow=ap and corrective action on quired, the auditee may choose to pro- all audit findings. .As part of this re- ' vide information requested by Federal sponsibility, the auditee must prepare 1 awarding agencies and pass-through a summary schedule of prior audit•find- i• . entities to make the schedule easier to Inge:The auditee.must also prepare a j use. For example, when a Federal pro- corrective.aotion.plan for current year I gram has. multiple Federal award audit:findings. The summary schedule /' • years,the auditee may list the amount of prior audit findings and the agree-, of Federal awards expended for each two action plan must include the•ref- Federal award year separately: At a erence numbers the auditor.assigns•to minimum,the:schedule must: audit findings under §200.516 Audit + (1) List individual Federal.program findings,.paragraph(o).Since the sum- I. by Federal agency.For a cluster of pro- mary schedule may include audit find- grams, provide the'cluster name, list ings from multiple years, it must in- individual Federal-programs within the elude the fiscal.year in,which the find- cluster of programa, and provide the ing initially occurred. The corrective 5 applicable Federal agency name. For action plan and summary schedule of R&D, total Federal awards expended prior.audit findings must'include find must be shown either by individual ings relating to the finanofal state- p Federal award or by Federal agency meats which are required to be re a and major subdivision within the Fed- ported in accordance with GAGAS. a'.. oral agency.F.or example,the National .(b) Summary sadhedule of prior audit Institutes of Health is a major BOW,- findings. The summary schedule of •sion in the Department of Health and prior audit findings must report the j • riuman.Services, status of all audit findings included in 33 (2) For Federal awards reoeived as a. the prior audit's schedule of findings 1. subrecipient, the name of the pass- and questioned costs. The summary +• through entity and identifying number schedule.must also include•audit find- assigned by the pass-through entity ings reported in the prior audit's sum- must be included. many schedule of prior-audit findings (3) Provide total Federal awards ex- exoept audit findings listed as oor- pended for each individual Federal pro- rested in accordance with paragraph n gram and the CFDA number or other (b)(1)of this section,or no longer valid { identifying number when the CFDA in- or not warranting further action.in ao- formation is not available. For a olus- cordanee with paragraph (b)(9) of this i • ter of programs also provide the total section. for the cluster. (1) When audit findings were fully .. (4)Include the total amount provided corrected, the summary•schedule need. • to•subrecipientefrom each Federal pro- only list the audit findings and state gram. that corrective action was taken. iC (5) For loan or loan guarantee pro- (2)When audit findings were not corms 1. grams described in §200.502 Basis for noted or were only partially corrected,determining Federal awards expended, the summary •schedule must describe I paragraph_(b), identify in the notes to. the reasons for the finding's recurrence : r l I 1 • §200.512 2 CFR Ch.11(1-1-14 Edition) 1 and planned corrective action,and any make copies available for public) in- . .partial corrective action taken. When enaction. Auditees and auditors must i corrootive action taken is significantly ensure that their respective parte of different from corrective action pre- the reporting package do not include .. viously'reported in a corrective action protected personally identifiable infor- • plan or in the Federal agency's or pass- mation. through entity's management decision, (b)Data Collection.The FAO is the re- - the summary schedule must provide-an pository of record for Subpart F—Audit I. explanation. Requirements of this part reporting (3) When the auditee believes the packages and the data collection pm, audit findings are no longer valid or do All Federal.agencies, pass-through en- not warrant further action,the reasons titles and others interested.in a report- for this position must be described in ing package and data collection form t. the summary schedule.A valid reason must obtain it by accessing the FAO'. 1. • for oonsidering an audit finding as not (1)The auditee must submit required warranting ftuther action is that all of data elements desorlb.ed in Appendix.X the following have occurred: to. Part 200—Data Collection. Form .. (I) Two years have passed since the (Form SF—SAC), which state whether audit report in which the finding oo- the audit was completed in accordance 1. purred was submitted to the FAO; with this part and provides informs- 1 (ii) The Federal agency or pass- tion about•the auditee,its Federal pro- t through. entity is not currently fol- grams, and the results of the audit. t ' • lowing up with the auditee on the audit The data must include information. =- finding;and. available from the audit -required by (ifi)A management decision was not- this part that is necessary for Federal • issued. ., agencies to use the audit to ensure in- (c)Corrective action plan.At the com- tegrity for Federal.programs.The data . pletion of the audit, the auditee must• elements and.format_must be approved prepare, in a document separate from by OMB, available from the FAO, and the auditor's findings described in inolude ooReotions of information from .• g200.516 Audit findings,a corrective ac- the reporting package described in tion plan to address each.audit finding paragraph (c) of this section. A senior if,included in the current year auditor's level representative of the auditee reports. The oorreotive action plan (e.g., state controller, director of ii- must provide the•name(s) of the con- panne,chief executive officer;;or chief tact person(s) responsible for correc- financial officer) must sign a state- tive action, the corrective action went to be included'as part-of the data planned, and the anticipated comple- collection that says that the auditee Mon date.If the auditee does not agree complied with the requirements of this t • with the audit findings or believes cor- part,the data were prepared in accords . . reotive action is not required,then the anon with this part.(and the instruct corrective action plan must include an. tions accompanying the form), the re- • explanation and specific reasons. porting package does not include pro- t $200.612 Re ort submission. tected personally identifiable informs, p tion, the information included in its i . (a) General. (1) The audit must be entirety is accurate and complete, and. oompleted and the data collection form that the FAC is authorized,to make the described In paragraph (b) of this.eeo- reporting package and the form pubs; i. tion and reporting package described in licly'available on a Web site. paragraph (o) of this section must be. (2) Exception for Indian Tribes. An submitted within the earlier of 30 cal-' auditee that is an Indian tribe may opt ender days after receipt of the audi- not to authorize the FAO to make the i tor's report(e), or nine months after. reporting package publicly available i the end of the audit period.If the due on a Web site,by excluding the author- date falls on a Saturday, Sunday. or ization for the FAO publication in'the Federal holiday,the reporting.package statement described in paragraph(b)(1) is due the next business day. of this section. If this option is exer- 1 (2) Unless restricted by Federal stat- pitied, the auditee becomes responsible utes or regulations, the auditee must for submitting. the reporting package t t .17 { • . I • i • .I OMB Guidance §200.513 directly to any pass-through entities graph(b)of this section:and one copy through which it has received a Fed- of the reporting package described in • eral award and to pass-through entities paragraph(c)of this section on file for for which the summary schedule of three years,from the date of submis- • prior audit findings repotted the status sign to the 11AC. • of any ,findings related to Federal (g)FAC'responsibilities.The FAC must' awards that the pass-through,entity make available the reporting,packages,: provided. Unless restricted by Federal received in accordance with:paxa"tg;apb statute or::segulation, if the auditee (a) of this section..and.§200.507 opts not not to authorize publication, It gram-specific audits, paragraph (6) to !, must make copies of the reporting the public,except for Indian tribes ex- package available for public inspect eroising the option in(b)(2)Of this see- tion.. . tion,and maintain•a data base of com- (3)Using the information included in pleted audits, provide appropriate in- the reporting -package described in formation to Federal agencies,and,fol- paragraph (o)of this section, the audi- low up with I mow_n auditees that have • for must complete the applicable data .not submitted the required data oollec- elements of the data collection form. tion forms and reporting packages. 7.'he auditor must sign a statement to (h) Electronic filing. Nothing in this be included'as part of the data oolleo- part must preclude.el'ectronic subinie- • tion form that indicates, at a min- sions to the FAO in such manner as imum, the source of the information maybe approvedby•OMB. inoluded in,the form, the auditor's re- sponsibility for the information, that FEDERAL.AGENCIES the form is not a substitute for•the re- • porting package described in paragraph §200.613 Responsibilities. (o)of this section,and that the content (a)(1) Cognizant agency for audit re- of the form is limited to the collection sponsibilities.A non-Federal entity ex- of information prescribed by OMB. pending more than$50 million a year in (o) Reporting package. The reporting Federal awards must have a cognizant package must include the: agency for audit. The designated cog- (1) Finanoial statements and ached- nizant agency for. audit must be the ule of expenditures of Federal awards Federal awarding agency that provides discussed in §200.510 Financial state- the .predominant amount of direct meats, paragraphs (a) and (b), respeo- funding.to a.non-Federal entity unless tivery; OMB designates a specific cognizant (2) Summary schedule of prior audit agency for audit. findings discussed 'in §200.811 Audit (2) To provide for continuity of cog- findings follow-up,paragraph(b); nizanoe, the determination of the pre- (3) Auditor's report(s) discussed in dominant amount of direct funding §200.515 Auditreporting;and must be based upon direct Federal • (4) Corrective action plan discussed awards expended in the non:Federal en- In §200.611 Audit findings follow-up, tity's fiscal years ending in;2009, 2014, paragraph(oli. 2019 and every fifth year thereafter. (d) Submission to FAC: The auditee For example,audit cognizance.for pert; r� must electronically submit to the FAC ode ending in 2011 through 2015 will be the data collection form described in determined based on, 'ederal awards paragraph (b) of this section and the expended in 2009. reporting package described in para- (3) Notwithstanding the manner in graph(c)of this section. which audit cognizance is determined, (e) Requests for management letters a Federal awarding agency with cog- issued by the auditor. In response to re- nizanoe for'an auditee may reassign quests by a Federal agency or pass- cognizance to another Federal award- through entity,auditees must submit a ing agency that provides substantial copy of any.manage;nent letters issued funding and agrees to be the cognizant by the auditor. agency for audit. Within 30 calendar (f) Report retention requirements. days after any reassignment, both the Auditees must keep one copy of the old and the new cognizant.agency for, data collection form described in para. audit must provide notice of the • i i- i i (i t • §200.513 2 CFR Ch.II(1-1-14.Edf ion) change to the FAO,the auditee,and,if standard performance by auditors must I known, the auditor. The cognizant be referred to.appropriate state Hoene- * agency for audit must: ing agencies and•professional bodies for (i)Provide teohnioal audit advice and disciplinary action. liaison assistance to auditees and audi- (vi) Coordinate, to the extent prao- tors. tical, audits or reviews made by or for II (II)Obtain or conduct quality control Federal agencies that are in addition j i reviews on selected audits made by to the audits.made pursuant to this non-Federal auditors, and provide the part, so that the_additional..audits or results to other interested organizer reviews build upon•rather than•dupli- tions.Cooperate and provide support to cote audits performed in accordance the Federal agency designated by OMB with thia part: to lead a governmentwide project to (vii) Coordinate a.management'deat- determine the quality of single audits eion for-Cress-cutting audit findings(as by,providing a statistically reliable es- defined in $200.30 cross-cutting audit tiniate of the extent that single audits finding) that affect the Federal .pro- oonform to applicable requirements, grams of more than one agenoy when • • standards,and procedures;and to make requested •by any'Federal awarding recommendations to address noted agency whose awards are included,in audit quality issues, inoluding reo- the audit-finding of the auditee. ommendations.for any changes to ap- (viii)Coordinate the audit work and • • plicable requirements, standards and reporting responsibilities among audi- • procedures indicated by the results of tors to achieve the most cost-effective • the project.This governmentwide audit audit. quality project must be performed once (ix))Provide advice'Co anditees,as to i every 8 years beginning. in 2018 or at how to handle changes in fisoal years. such other interval as determined by OMB,and the results must be public. (b) Oversight agency for audit re- . MD Promptly inform other affected sponsibilities.An auditee who does not Federal agencies and appropriate Fed- have a designated cognizant agency for . eral law enforcement officials of any audit will be under the general over- direot reporting by the.auditee or its sight of the Federal.agency determined, auditor required by GAGAS Or statutes in accordance with `$200.73 Oversight and regulations. agency for audit. A Federal agency (iv) Advise the community of inde- with oversight for an auditee mayPeas- c pendent auditors of any noteworthy or sign oversight to another Federal en- - . important'faatual trends related to the oy that agrees. to. be the oversight quality of audits stemming from qual- agency for audit. Within'30-calendar. ity control reviews. Significant prob days after any reassignment,both the lems or quality issues consistently old and the new oversight agency for identified through quality control re- audit must provide notice of the views of audit reports must be referred change to the FAO, the auditee,and,If to appropriate state licensing agenoies known, the auditor. The oversight • and professional,bodies. agency for audit: (v) Advise the auditor,. Federal (1) Must provide technical advice to awarding agencies, and, where appro- auditeee and auditors as requested. priate, the auditee of any deficiencies (2)May assume all or some of the re . found in.the audits when the defi- sponsibilities normally performed by a oienoies require corrective action by cognizant agency for audit. the auditor. When advised of deft- (c) Federal awarding agency respon- ciencies, the auditee must work with sibilitiee.The Federal awarding'agency the auditor to take corrective action, must perform the following 'for the If corrective action is not taken, the Federal awards it makes (See.also the cognizant agency for audit must notify requirements of $200.210 Information the auditor,the auditee,and applicable contained in a Federal award): II Federal awarding agencies and pass- (1).Ensure that audits are completed through entities of the facts and make and reports are reoeived In a timely recommendations for follow-up action. manner and in accordance with the re-, Major inadequacies or repetitive sub- qufrements of this part. iPif . 9 i I . • ii • I. I, OMB Guidance §200.5141. (2) Provide technical advice and for the single audit process both within counsel to auditees and auditors as re- and outside the 1.Federal government. quested. (11). Promote.interagency.'coordina- (3)Follow-up on audit findings to en- Lion, consistency, and.ohering in areas sure that the recipient takes appro- snob. at-Coordinating audit follow-up; priate and timely corrective action.Ae identifying;higher-risk non-Federal en • - part of audit follow-up, the Federal titles;,providing input on single.audit_ I. awarding agency must: ' and.,folloW-up. policy; enhancing the (1) Issue a management deoision as utility of the FAC; and studying ways prescribed in §200.521'Management.de- to itee single audit results to improve ' • oision;. • Federal award a000untability and-best ' (It) Monitorthe recipient taking ap- practices. 1 propriate and timely corrective action; (iii) Oversee training for the Federal (iii)Use:Cooperative oopprative audit resolution awarding. agency's program manage- mechanisms.-:(tee §200.25' Cooperative meat-personnel related to the single ). audit resolution) to improve Federal audit.prooess. i. program. outcomes through better' (iv) Promote the Federal awarding i audit resolution,follow-up,and correo- agency'•a use of cooperative audit.rem- , tive notion;and lotion nieohajems. (iv) Develop a baseline, metrics,and (v) Coordinate the Federal.awarding targets to track, over time; the effec- agency's activities to ensure appro; tiveness of the Federal agency's proo- prlate.and timely follow-up-and correo- eas to follow-up on-audit findings and tive action on audit findings. on the effectiveness of Single Audits in (vi) Organize the Federal cognizant improving non-Federal entity account- agency for audit's follow-up on cross- i' • ability and their use by Federal award- cutting audit findings that affeot the mg agencies in makin g award deal- Federal programs of more than one aions. Federal awarding agency. (4) Provide OMB annual updates to (vii) Ensure the Federal awardingk. the compliance supplement and work. agency:provides_annual updates of theI. with OMB to ensure that the compll- oompliance supplement-to OMB. ance supplement-focuses the auditor to Mil)'Support the Federal awarding i• test the compliance requirements most agency's single audit accountable offi- ) likely to cause. improper' payments, offal's mission,.; fraud, waste, abuse or generate audit finding for which the Federal awarding AuDITO&B i agenoywill take sanctions. , .(5)Provide OMB.with the name of a' §200.614 Scope of audit. ; tinge audit accountable official from •(a) General:. The audit must be con- anlong the senior policy official8 of the ducted in accordance with GAGAS.The I. Federal awarding agency who must be: audit must cover-the entire operations I. (i)Responsible for-ensuring that the of the auditee, or, at the option of the agency fulfills all.the requirement of auditee, such audit must include a se- §200.513 Responsibilities and effectively ries of audits that cover departments, is 1. uses the single audit process to reduce agencies, •and other organizational improper payments and improve-Fed- units that expended or otherwise ad- oral program outcomes. ministered Federal awards during such ,. (it)Held accountable to improve the audit period, provided that each such : effectiveness.of the single audit process audit must encompass the financial based upon metrics as described in statements and schedule of expendi- i paragraph(o)(3)(iv)of this section. tures of.Federal awards for each such 'I (iii) Responsible for designating the department, agency,and other argent- .1.. Federal agency's key'management sin- zational unit, .which must be ooneid- gle audit liaison. ered to be a non-Federal entity.The fi- (0)Provide OMB with the name of a nancial statements and schedule of,ex- key management single audit liaison penditures of Federal awards must bef. who must: for the same audit period. (1) Serve as the Federal awarding (b) Financial statements. The auditor ;: agency's management point of contact must determine whether the financial i 1$1 • i I . I . • • • §200.515 2 CFR Ch.Ii(1-1-14 Edition). ' . . statements of the auditee are presented tons.of Federal awards that may have fairly in all material respects in ac- a direct and material effect on each of oordauee with generally accepted an- its major programs. i counting principles. The auditor must (2)The principal'compliance require- I, also determine whether the schedule of ments applicable to most Federal pro- i.• expenditures of Federal awards is stab- grams and the compliance requir.e- ed fairly in.all material respects in re- manta of the largest Federal programs lotion to the auditee's financial state- are included in the compliance supple • - ments as a whole. meat.. • (a) Internal control. (1) The compli- (9) For the compliance requirements • anoe supplement provides guidance on related to Federal.programs contained .internal. controls over. Federal. pro- in the compliance supplement,an audit... grams batted upon the guidance in- of these oomplianoe.requirementa•.will Standards'for•Internal Control in the meet the requirements=of this part. • Federal Government leaned by the Where there have been changes to the .Comptroller General of the United compliance requirements `''and the, States and the Internal Control—late- changes are not reflected in the com grated Framework,issued by the Com- plisagoe supplement, the auditor'must mittee of Sponsoring Organizations of determine the`ouirent oouiplianee re- the Treadway Commission"(OOSO). quirements and modify the audit prone- •• (2)In addition to the requirements of dures accordingly. For those Federal • • GACAS, the auditor must perform pro- programs not covered in the oomBli- • oednres to obtain an understanding of anoe supplement, the auditor should internal control over Federal programs follow the compliance supplement's sufficient to plan the audit to support • a low assessed level of control risk of guidance for programs not included in . noncom• pliance for major programs. the supplement. (3) Except as provided in paragraph (4) The compliance testing must in (c)(4)of this section, the auditor Must: elude tests of transactions and such. (i) Plan the testing of internal con- other auditing procedures necessary.to trol over compliance for major pro- provide the auditor sufficient appro- �'• grams to support a low assessed.level priate audit evidence to support an. opinion on compliance. ' of control risk for the assertions .rel- avant to the compliance requirements (0) Audit follow-up. The auditor must for eaah•major program;and follow-up• on prior audit findings, per- (ii) Perform testing of internal con- form procedures to assess the reason- ted as planned in paragraph(o)(3)(i)of ableness of the summary schedule of . this section. prior audit findings prepared by the ` (4) When internal control over some auditee in accordance with §200.511 or all of the compliance requirements Audit findings follow-up paragraph(b), for a major program are likely to be in- and report, as 'a current year audit effective in preventing' or detecting finding,' when the auditor concludes noncompliance, the planning and per- that the summary schedule of,prior i forming of testing described in pare- audit findings materially misrepre- graph.(0)(3) of this section are not re- sents the status of any prior audit find- , Mitred for those compliance require- follow-up The auditor must perform audit ments. However, the auditor,must re- follow-up procedures regardless of port a significant deficiency or mate- whether a prior audit finding relates to rial weakness in accordance with a major program in the current year. §200.516 Audit findings; assess the re- (f) Data Collection Form. As required hated control risk at the maximum,. in §200.512 Report submission para- and consider whether additional.corn- graph(b)(3),the auditor must complete s. p]Sanoe tests are required because of and sign specified sections of the'data ineffective internal control. oolleotion form. (d) Compliance. (1)In addition to the• requirements of GAGAS, the auditor 424)0.510 Audit reporting. i must determine whether the auditee The auditor's report(s)may be in the has complied with Federal statutes, form of either combined or separate re- regulations, and.the terms'and condi- ports and may be organized differently 102 • 1 • • I 1. 1 1. OMB Guidance 200.5.15 1. . from.the manner presented in this sec- (iii) A statement as to whether the tion.The auditor's report(s)must state audit disolosed any noncompliance:. that the audit was conducted in ao- that is material to the financial state • - cordance with this part and include the ments of the auditee; following: • (iv) Where applicable, a statement 9 (a)An opinion(or disclaimer of opin- about.whether.significant deficiencies i ion) as to whether the financial state- or material weaknesses in internal con- i" ments are presented fairly.in all mate- trol over major programs were die- rial respects in accordance with gen- alosed.by the audit; erally aooepted accounting principles (v) The type;of. report the auditor_. I- and,an opinion (or disclaimer of•opin- issued on compliance ••for •major pro- Son) as to whether the schedule of en- •grams(i.e., unmodified opinion, quell, ' penditures of Federal awards is fairly lied opinion, adverse opinion, or die- stated in all material respects in rela- -claimer of opinion); �. tion to the_ finanofal statements as a (vi) A statement as to whether the • Whole. audit disclosed any agdit findings that (b)A report on,internal control over the auditor is required to report under financial .reporting and Compliance §200.51@ Audit findings paragraph,(a); - with,Federal statutes,regulations, and the terms and conditions of the Federal (vii)An identitioation of major pro award, noncompliance with which grams by listieg each individual major eouId have a material effect on the fi- program;however in the case of a clueI. - ' naneial statements..This report must ter of programs only the cluster name describe the scope of testing of'internal ae shown on.,the Schedule of,Expends- P control and oompliance and the results •tires of Federal Awards is.required;, E. of the.teats, and, where applicable;'it (viii) The dollar threshold used to will refer to the separate schedule of distinguish between Type A.and Type B . findings and questioned costs described programs, as described in §200.518 i •in paragraph(d)of this section.- Major program determination para- (C) Areport on compliance for each graph(b)(1);or(b)(3)when a recalaula- major program and report and internal tion of the Type A threshold is-re • - control over compliance..This report quired for large loan or loan guaran- • must describe the scope of testing of tees;and internal control over.compliance, in- (ix) A statement as to whether the chide an opinion or modified opinion as'. audited qualified as a low-risk auditee - to whether the auditee complied with under §200.520 Criteria for a low-risk }}} Federal statutes, regulations, and the auditee. f terms and conditions ot;Federal awards,• (2)Findings relating to the financial 1 which could have a direct and material statements which are,required'to be re- effect on-each major program and refer ported in accordance with GALAS. to the separate sohedule of findings and (3)Findings and questioned costs for • questioned costs 'described in para- Federal 'awards which must include 1 graph(d)of this section. audit findings as defined in §200.51.8 • (d)-A schedule of findings and ques- Audit findings,paragraph.(a), I. Moiled costs whioh must include the (1)Audit findings (e.g., internal con.. following three components: trol .findings, compliance findings, (1) A summary of the auditor's re- questioned costs, or fraud) that relate • suite,which must include: to the same issue should be presented (I) The type of report the auditor as a single audit finding. Where prao- issued on whether the financial state- tical, audit findings should be orga- ments audited were prepared in accord- nixed by Federal agency or pass- ance with GAAP(i.e.,unmodified-opin-! through entity. ion, qualified opinion,adverse opinion, (ii)Audit findings that relate to both or disclaimer of-opinion); the financial statements and,Federal (ii) Where applioabie, a statement awards, as reported under. paragraphs about whether significant deficiencies (d)(2)and (d)(3) of this section,,respec- or.material weaknesses in.internal eon- tively,should be reported in both sec- trol were disclosed by the audit of the• tions of the schedule.However,the re- financial statements; porting in one section of the schedule lg . • , i t.• i,....` • " • ,• •• • 1 i 1. i- 1. §200.516 2 CFR Ch.II(I-1-14 Ed'flan) • • YuVI,a1, . . , • col -,1,4L-,,,t4Ig. rd. t‘ii to provide pro be in eiinkrniu7,•forin vorta_A pm-- the auditor ndiallf4 . -... g Plpuse r' piellrfelpued:tivi life ofron; 411419i..itligttti .61.C6116$114' - . 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Li -1.0•15f.tiithl:ItthiShi''.14460g° any jaigihiptoout.4 gip statitie..4)1,;fAd. : c es IPA- '--•• •---6,i- •?'•mit.,Iiist tii6 • . . _... twetis.,cit066-1Ottiid:po..1,.. r. .,-- .,,,.. --ii 4iriOrtpild4i1Ott • 4 iinfliitithi briattifetti4c . -0)i.Atiok.,*(104 44tait::,0:4; --4 ' ' 1,,i3 . cut; -, Ofici*ii:(itii*,10#64:6 %'-• lle'r;`P 'qd An41C,,t110414g '.:*146 t:'-' 11***1..44' • i. 146"44''''''.44:" .164171:i•I'"t.1 . stlillaianti;-.40tiill. *hit clarity. 'td.. Lti. . gifrit.,,fii.)1*.lik-61i''4u;00.0612P-* " •'47rn.; •7.aatitaa,.ta,Iiit6***.d.ir.!_eOtiye...-.zr:tolf.in litahtif'1*41C:t2Q4C)- (6'.a"''°11t(1''Pr. ) . 1146:b.iiit'take',.(15ifti*itiVii.-441 60. anti. ' "6i16a.-146362611 16r...11;148.3Pr Pro- 'F....P6 tiiiyil tigatiaii :Ito,00thlkOtts'll• 11• - ..- '' •.:•' aaiaolod• .00ata, . oz t • ... . . k...iiiin, ill reog-ting 43 u ,... •• • 3,81 -' .. • { • • • OMB Guidance §200.517 entities to arrive at a management de- resent'an. isolated instance or a sye- . • oision. The following.specific informs- temic problem. Where appropriate, in- tlon must be inoluded,as applicable,in stances identified'must be related to• audit findings: the universe and'the number of.cases (1)Federal program and specific Fed- ex/g iiped and be quantified in terms of. oral award identification including the dollar value.The auditor should report CFDA title and number,.Federal award whether the sampling was a etatis- identifioation.number and year, name tically valid sample. Of Federal.agency,and name of the ap- (8) Identification of whether the • plicable pass-through entity. When in- audit finding was a repeat of a finding. formation,such as the CFDA title and. in the'immediately"prior audit and If number or Federal award identifioation so any applicable,prior year.,audit fund- number. is not available, the auditor ing numbers. must provide the best information. (9) Recommendations.to.prevent fu- available to describe the Federal turd occurrences of the deficlenoy iden- award. tilled in the audit finding. • (2) The criteria or specific require- (10) Views of responsible officials of meat upon which the audit finding is the;audited. based, including the Federal statutes, (c) Reference numbers. Each audit regulations, or the terms and condi- finding in'the.schedule of findings and tions of the Federal awards. Criteria questioned costs must include a ref- generally identify the'required or. de- erenoe nuxzlber.in the format meeting sired state or expectation with respect the requirements of the data Collection to the program or operation. Criteria form submission required by §200.512 • ' provide a context for evaluating evi- Report. submission, paragraph (b) to denoe and understanding findings. • allow for easy referenoing,of the'audit (3) The .condition found, including findings during follow-up. faots that support the defioienoy iden-• ZO�.b17 Audit documentation tilled in the audit finding, . (4)A statement of cause that identi- (a) Retention of audit documentation. lies the reason or explanation for the The auditor must retain,audit dgcu- condition or the factors..responsible for• mentation and reports for a miniinum. • the difference between the situation of, three years after the• date of • that exists(condition)and the required' issuance of the auditor's report(e) to Or desired.state (oriterla); which-may the auditee,unless the auditor:is noti- also serve as a basin for reoomfnenda- fled in writing by the cognizant agency lr tions for;corrective action: for audit, oversight agency for'audit, (5) The possible asserted effect to cognizant agency for indirect costs, or . provide sufficient information to the pass-through•entity to extend the re- auditee•and Federal agency, or pass- tention period. When the auditor is through entity in the ease of.a subs aware that the Federal agency, pass- • recipient, to permit them to determine through entity, or audited is con- the cause and effect to facilitate testing an. audit'finding, the auditor prompt and proper.corrective action.A must contact.the parties contesting statement of the effect or potential ef- the audit finding for guidance prior to., feet should provide a clear,logical link destruction of the•audit documentation • to establish the impact or potential and reports. impact of the difference between the.. (b) Access to audit documentation. • condition and the criteria. Audit documentation must be made (8)Identification of questioned costs available upon request to the cognizant and how they were computed. Known.. or oversight agency for audit or its des- questioned costs must be identified by ignee, cognizant agency for indirect applicable CFDA number(s) and appli- cost, a Federal agency, or GAO at the I: oable Federal award identification completion of the audit, as part of a number(s). quality,review, to resolve audit find- (7)Information to provide proper per- nags, or-to carry out oversight respon, tt speotive for judging the prevalence and eibilitiee consistent with the purposes consequences of the audit findings, of this part. Access. to audit doou- such as whether the audit findings rep- mentation includes the right of Federal 186= • 200.518. 2 CFR Ch.11 d 1-1-14 Edition) agenoies to obtain copies of audit docu- loans if the value of Federal awards ex- mentation, as is reasonable and nee- pended for loads within the program• essary. comprises fifty peroent or more of the *200,518 . total Federal awards expended for the progct ► dt erutlna-. program. 'A cluster of programs is ' treated as one program.and the value (a) general. The auditor must use a of Federal awards expended under a risk-based approach to determine loan program is determined as de- which Federal'programs are major pro- scribed in §200.602 Basis for deter- grams. This risk-based approach moat mining,Federal awards expended. •.. include consideration of: current and (4) For biennial audits' permitted prior. audit experience, oversight by under§200.504 Frequenoy of audits,the Federal agenoies and pass-through en- determination of Type A and Type B titles,and the.inherent risk of the Fed- programs must be based upon the Fed- eral program. The process in pars- oral awards expended.during the two- graphs (b) through (i) of this section year period,. must be followed. (a) Step two. (1) The auditor must (b) Step one.(1) The auditor must identify Type A programs which are identify the larger Federal programs, low-risk. In -making this determine., which must be labeled Type A pro- tien, the auditor must consider wheth- grams.Type 8..programs are defined as er.the requirements in§200.519 Criteria Federal programs with Federal awards for-Federal program risk paragraph(o), expended during the, audit period ex- the results•of•audit follow-up, or any deeding the levels outlined In the table:- changes in personnel or systems affect- in this paragraph(b)(1): ing the program indicate significantly Toter Federal awards ex- increased risk and preclude the'pro- . pended Type threshold gram,from being low'risk. For a Type - -_- • A program to be considered low-risk,it Equal to$750,000 but leas $750,000. must have been.audited as a major pro- (ham$equal to 825 tnmlen' am in at least one Of the two most • Exceed$25 matron but legs Total Federal awards ex- . than or equal to$100 mlt- pearled times.03. recent audit periods (in the most re- mn cent audit period in the case of e,bien- Exceed$100 Melon but leas 83 million. nial audit), and, in the most recent Exceed $1 equal bill lessll n Total Federal awards ex- audit period, the program must have then*equal to$10 billion. pearled limes.003. not had:' awed$10 billion but lose $30 merlon. (1) Internal control deficiencies than Or equal to$20 Wilton { Exceed$20 bison Total Federal awards ex- which were identified as material panted times.0015. weaknesses.in the auditor's report on internal control for major programs as (2) Federal programs not labeled required under §200.616 Audit report- Type A under paragraph (b)(1) of'this ing,paragraph(o); section must be labeled Type B pro- (11) A modified opinion on the pro- grams, grant in the auditor's report.on major (8) The inclusion of.large loan and programs as required under §200.515 loan guarantees (loans) should not re- Audit reporting,paragraph(c);or suit in the exclusion of other programs (iii)Known or.likely questioned costs as Type A programs, When a Federal that exceed five percent of the total program providing loans exceeds four Federal awards expended for the pro. times the largest non-loan program it gram. is considered a large loan.program,and (2) Notwithstanding paragraph (c)(1) the auditor'must consider this Federal of this section, OIvfB may approve a program as a Type A program and ex- Federal awarding agency's request that elude its values in determining other, a Type A program may not be ooneid- Type A programs.This recalculation of ered low risk for a certain recipient. the Type A program is performed after For example,it may be necessary for a removing the total of all large loan large Type A program to be audited as programs. For the purposes of this a major program each year at a par- paragraph a program is only considered titular recipient to allow the Federal to be a Federal program providing awarding agency to comply with 31 189' l 3 • j. • I I OMB Guidance. §2005)9 ' U.S.C. 3515. The Federal awarding additional Federal programs with Fed« 1. agency must notify the recipient and, eral awards expended that, in aggre- if known, the auditor of OMB's ap- gate,all niajor•programs encompass at . t proval at least 180 calendar days prior least 20 percent (0.20)_of total Federal to the end of the fiscal year to be au- awards expended. Otherwise, the wadi- diced. for must audit the major programs (d) Step three. .(I) The.auditor must identified in Step 4 (paragraphs (e)(1) identify Type-B programs wbioh are and(2) of this section)and such addi- high-risk using professional judgment tional Federal.programs with Federal and the criteria in §200.519 Criteria for: awards expended that,.in aggregate,all Federal program ris). However,. the major.programs encompass at least 40 auditor is not required to identify more percent (0.40) of total Federal awards , high-risk Type B programs than at expended. least one fourth the number of low-risk. (g)Documentation of risk. The auditor i. Type A programs identified as low41sk must include in•the audit documenta- under Step 2(paragraph(a)of this sec- tion the risk analysis process used in tion).Except for.known material weak- determining major programs. ness.in internal'control or compliance (h) Auditor's judgment. When the 7' problems as discussed in §200.519 Cri- major program determination was per- 1' taiga for Federal program risk pare-. formied"and.documented in accordance graphs (b)(1), (b)(2), and (o)(1), a single with this Subpart,,the auditor's judg- i criteria in'risk would seldom.cause a ment in applying the risk-based ap- Type Bprogram.to be considered,high- proaoh to determine major programs risk. When identifying which Type'B must be presumed correct. Challenges • programs to risk assess, the auditor is by Federal agencies and pass-through encouraged to use an approach, Which entities must only be for clearly im- .1 provides an.opportunity for different proper use of the requirements in this 1. high-risk Type B programs to be au- part. However, Federal agencies and dited.ae.major over a period of time. (2)The auditor is not expected to per- Pass-through, entities may provide form risk assessments on relatively auditors guidance about the risk of a small Federal,programs.Therefore,the• particular Federal program and the • auditor is only required to perform risk auditor.must,consider this guidance in assessments on Type B programs.that determining major programs in audits exceed twenty-five percent(0,25)of,the •not yet:completed. E Type A threshold determined in Step 1 §200.$18 Criteria.for Federal.program (paragraph(b)of this section). risk. (e) Step four.'At a minimum, the • auditor must audit all of the following, (a) General.,The auditor's determine- as major programs: tion:should be based on,an overall eval- (1) All Type.A programs not identi- uation•of the risk of.noncompliance oo- . Pied as low risk.under step,two (para.- curring that could be material to the r• graph(o)(1).of this section). Federal program. The auditor must (2)All Type B programs identified as consider criteria, such as described in high-risk under step three (paragraph Paragraphs (b), (o), and(d) of this see- d)of this section). • tion, to identify risk in"Federal pro- (3) Suoh additional programs as may grams, Also, as part of the risk anal, be necessary to comply with the per- yais, the auditor may wish to discuss a 1 oentage of coverage rule discussed in particular Federal program with • paragraph (f)-of this section. This may auditee management and•the Federal r require the auditor to audit more.pro- agency entity. !' grams as major programs than the (b) Current and prior audit experience. number of Type A programs. (1)Weaknesses in internal,control over (f) Percentage of coverage rule. If the Federal programs would indicate high- auditee meets the criteria in §200,520 er risk. Consideration should be given • !' Criteria for a low-risk auditee, the to the control environment over Fed- 1 auditor need only audit the major pro- eral programs and such factors as the grams identified in Step 4 (paragraph expectation of management's adher- . (e)(1) and (2) of this section) and such ence to Federal statutes, regulations, 1$7 t 1 I { f • 1 f §200.520 2 CFR Ch.II(1-1-14 Edition) ' • • and the terms and conditions of Fed- personal services, but otherwise be-at, eral awards and the competence and low risk. . experience of personnel who administer -(21 tha phapg bt a i'c�et&1'1a tram 9n ,' the-Federal programs '(I) `bdora1 its 11fe aye18 a1. Cftq 1;'wimpt tt�t1]i w dram tulministereS i tidi( :t8 Pik •p iiik ii a 44vi n1Mler n1tApie Intorfial control fatruc- • t]1er,11irogrtr Milt tew.;?oj 1:oifin '.Lin'e may have hig`ber risk.When ea- ,re ru'Iatichfs may4invo h`ighsi ri97t than Wt waging rjsks 1.n a singlo�.aud1E,;tom ion.otititlllitiliof1 progr witb'.;irrloyLos ar flitoia use aoi3alsler Rvb®th r wetblz silt 3; neases a itolatoti;�fn to eixigre op0t+4 o purges L am $ y at iig unit(eg ono p0I1e'dd camp)ts)1Or r. b.h s, otf t ui Garaa8.,end nondi: yervdsivtl tliruug'hoj ,na a tIt,8 Lid of FoJeral a rds y meat i : (ii) When e igatilluant±liaiLs`of a dad r is - oral'l ram are passed td ou 8 r to s' 'h yola �fE la I�rta1tet rogtaLnd 0,p 0iPietite,&�►eA1£ eta for rol 1(o li.to 06)11 gb't1li9,4iffikeg:ip I. audit tttt�ttg subreoipio'iif .woiild. iii0ettte oat"e tisi liner higher iisk._ #iljxla�tlifrlag 1t1u31Ytut (2) Prior audit findings would ihdi h•idtt Rt3.'`�tu#h>a•81. ivntTt�.0 partici,-. 1 Sa8 ili f6:FEdt 1:ki'og :`Glsa lick oats higher risk,particularly when the tiiny*bo'lugiso dua$t}, situations identified,in the audit 07�t kiss-' find o(4)T'r ltfii b � tiiOtt xidE (cif Line eould.have a significant impact au {4f Type$'pry titltla Target rect- a Federal program or have not been • • &Treated. ortilaiwvai dB iiit trtt 1od' �otild fie of)? i'r hilt tha i •e r r..ins altli subiid�iv. (3)Federal programs not recently au- lisily tntaller Two* ,awar;sis .h- dated as major programs may bo of .pendoif. higher risk than Federal programs re- cently audited as major programs with- §200.620 Criteria ,fear a i ask out audit findings. auditee. i: (cl:Diiersiph cr€.1 4:11,9._P spat agtpli- An auditee that meets all of the fol- cks:ttytd faatsitriihOii?a;n itias.(t) Q r- lowing oonditfons for each,of the pre- sight,:exercJ l by P zieei i s mils er .ceding two audit.periods must qualify ;t rengl:.outities..aouid us• be sd.to as a low-risk auditee and be eligible for rseess risk; Foi'.e?`aa6lst� 04e tYiou'1- reduced audit coverage in accordance i[ tarlag or oilier. reviews par'formt�d by with §200.518 Major program deter.- F. an ovt gllt•`entiby_tlia`t diauloseil no urination Osign f1caat. 11)@uu ...WOO nAivate (. Mania uij W petrme . i.loh,,'is)e. tvbrca montorltugfat On a„i3.MI ash In gwa,04ttio*-1:t Elie dfselbeud iffa si3nsxit]-14 li8aiis would pr siona tiof¢hits Siib 1, �inolutltng-tit , Eis • aubtrii°6ldh ih darw.c neb�lo3t form(2)Federal agencies,with the concur- 4hti:the t'e aitl ' ranee of OMB, may identify Federal Withiiy Ghd l nia ame`g!f,o ` `n' liecsifiAtl i programs that are higher risk. OMB $�06�i32 itep4ii•L Ocbrtiinslon,�„ppii lr4, will provide this identification in the Oi~:t- 'atiko: i haY`line;billiinial aiOii.t t compliance supplement doetrtiet Bail >utt`4U.10t4 rih1C'.and1:44 ldl.11h.rerli. ls' (9 Q1,Ol L't aloe J liro� i h) 'hs attait0r'a t p.nlap,"*:*.helthiii' ummi (I)Tho;naters;of a lndprsl pro th fiiv lltl sh011it:ishts tr�eis preliai•ad ,i,'itit nits.}+ lndfoato risks t.is"hie6-;h140 1ii accordance with i'-r m`a bastai'cof olibiLi( •be given ie the r onil?leidty of 0*.oltitttfl i qu .byit+st3 of tfi'.10;end. tlia i gfitm aid:the extent to which the'1,411t eOli relation to tipini40. on abi Y ednrS1 .proj,tpati aon'tratata. Air Pte5C1IOIIus'iifllapendltiiresrrrod r .•giio414,tuail ecrvtcoa P'af exattiple Fe -d awiudn wordtiiimottifteil brat .pgr ronxne that tfiiburce funtie (0)'Micro•ware no defioleniitios.aft In-. t I htitugh•third,party coucrat :or.liana:. co • teiinal ntra7'which wore fdontified lii• i Oligibfllt'y Oriiai-la 1110. ha'roi` higliai• rnatwerisi vreaktnessce under the retlui e- • risk;,I`ederal.'prcgreilis Mi.mzrlly in, mnniitsofGA.34. tolplilg Stair jm.,vroll costs ,may bavc, • (d)The auditor did not report a sub- high risk Car_,nttnrgmpllatbee with ri?• stantial doubt about the auditee's abil- Oirehiente.tlf:i'200,430 Cam�nsration— ity to continue as a going concern. 1. 18B `, t ' t I Program Name Reporting Date Range From: To: lequest for Reimbursement Amount$ DEMOGRAPHIC SUMMARY Race/Ethnicity Owner Renter Total Households Total Hispanic/Latino Total Hispanic/Latino Total Hispanic/Latino White Black/African American Asian American Indian/Alaskan Native Black/African American&White American Indian/Alaskan Native& Black/African American • Other multi-racial Totals: Female-Headed Households: Income Levels Owner Renter Totals Extremely Low<30% • Low<50% Moderate<80% Non-Low/Moderate Totals: %Low/Moderate: Total Households Assisted #of Households With New or Continuing Access to a Service or Benefit:. With Improved Access to a Service or Benefit: Received a Service or Benefit that is No Longer Sub-standard: Totals: NOTE:Only include completed and unduplicated projects or services in demographics data. • ADDRESS SPECIFIC DEMOGRAPHIC INFORMATION Date Race or Hispanic or Female-Headed Household Number of Jobs NRSA Address(Property Age) Completed Ethnicity Latino Household Size Bedrooms Own or Rent Income Level Created Area CDBG Co-Funding Total • SERVICE SPECIFIC PROJECT DEMOGRAPHIC INFORMATION(TOTALS FOR PAY REQUEST PERIOD ONLY) Date Race or Hispanic or Female-Headed Household Number of Jobs NRSA Demographic Totals for Period Completed Ethnicity Latino Household Size Bedrooms Own or Rent Income Level Created Area CDBG Co-Funding Total • MINORITY BUSINESS & WOMEN BUSINESS ENTERPRISE PLAN October 2014 OMAHA'NF • 4 ` 9 ' • k� h TrA 4,44D FE130* PLANNING•OMAHA Jean Stothert,MayorPLANNING DEPARTMENT David K.Fanslau City of Omaha CITY OF OMAHA City of Omaha Planning Department • Omaha/Douglas Civic Center • 1819 Famam Street Omaha,Nebraska 68183 1 Reviewed and approved 08/30/2017 MINORITY BUSINESS/WOMEN BUSINESS ENTERPRISE PLAN INTRODUCTION Minority and women business sectors play an important part in Omaha's overall plans for future growth, progress, and prosperity. It is vital to the City's economic condition and well-being that minority and women businesses expand, thrive and prosper, generating economic stability and increased job opportunities. Towards the fulfillment and accomplishment of these important objectives, the City of Omaha remains committed to minority and women business development. The City of Omaha's approach to minority/women business development is embedded in its policy of non- discrimination in the conduct of City business including the procurement of goods, materials and services, construction and community and economic development projects. The City recognizes its obligations to each segment of the various communities it serves. It is in recognition of these responsibilities that the City established the City's Contract Compliance Ordinance. The Ordinance commits the City to: 1. Require contractors and/or vendors to provide employment opportunities without regard to race, color, sex,religion, or national origin; 2. Monitor contractor and vendor equal opportunity performance; and 3. Increase the total number and total dollar volume of City contracts awarded to minority-owned and women-owned firms. GOALS AND OBJECTIVES The following represents a summary of the goals and objectives of the Planning Department as they relate to minority and women-owned businesses: 1. Encourage, increase and promote business and procurement opportunities for women-owned businesses; 2. Increase and expand the awareness and understanding regarding the concerns, obstacles, and hindrances preventing increased MBE/WBE participation in Planning Department activities; 3. Assist MBE's/WBE's through the revitalization of business districts; 4. Assist minority and female entrepreneurs in the formation and growth of new small businesses; and 5. Provide technical assistance to neighborhood organizations, MBE's and WBE's to increase their participation in the Planning Department programs and activities at all levels. • SCOPE OF WORK In order to accomplish these objectives, the Planning Department will: 1. Require that recipients of grant awards, consulting contracts, or loans to adopt the City's MBE/WBE Enterprise Plan. The Minority Business/Women Business Enterprise and Fair Housing plan must be filled out by contractors, developers, corporations, partnerships and/or sole proprietors. 2. Ensure that Requests for Proposals have the MBE/WBE Enterprise Plan. 3. Ensure that the programs of the Planning Department are advertised in the appropriate new media whose markets are targeted toward MBE/WBE. 2 Reviewed and approved 08/30/2017 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 Rights & Relations Department. In addition, require these entities to complete CC-1 (Human Relations Department). The following information has been developed to assist you in complying with the MBE/WBE requirements in the agreement with the City of Omaha. If you have any questions, please contact Edward Dantzler at(402) 444-5150 Ext. 2009. 3 Reviewed and approved 08/30/2017 MBE/WBE FOR GOODS AND SERVICES Your company must make vendors aware of equal opportunity utilization of minority, disabled and women-owned businesses. To accomplish this goal, you must provide a copy of the approved MBE/WBE Participation Plan to all businesses providing goods and/or services to the project. Your company must provide the opportunity for Minority Business Enterprises and Women Business Enterprises to provide goods and services through all phases of the project. A concerted effort must be made to allow these businesses to actively compete for project contracts. This effort will include utilization of the following resources and documentation of your actions to achieve these objectives. City of Omaha Housing and Community Development Division 1819 Farnam Street Room 1111 Omaha,NE 68183 Edward Dantzler, Development Section Manager ed.dantzler@cityofomaha.org (402) 444-5150 Ext. 2009 Fax: (402) 444-5201 City of Omaha Human Rights &Relations Contract Compliance 1819 Farnam Street Room 502 Omaha,NE 68183 Maria Partida, Contract Compliance maria.partida@cityofomaha.org (402)444-5050 Fax: (402)444-5058 Minority Economic Development Greater Omaha Chamber of Commerce 1301 Harney Street Omaha,NE 68102 Winsley Durand, Senior Director-Business Attraction wdurand@selectgreateromaha.com (402) 233-7144 Fax: (402) 346-7050 • • 4 Reviewed and approved 08/30/2017 MBE/WBE FOR GOODS AND SERVICES North Omaha Contractor Alliance • 2505 North 24th Street Suite 409A Omaha,NE 68110 Houston McKell, III, Executive Director houstonmckell@yahoo.com (402) 991-3420 Omaha Small Business Network, Inc. 2505 North 24th Street Omaha,NE 68110 Julie Parker, Executive Director info@osbnbtc.org (402)453-5336 Fax: (402)451-2876 Small Business Administration 10675 Bedford Avenue Suite 100 Omaha,NE 68134 Dwight Johnson dwight.j ohnson@ sb a.gov (402) 221-7206 Fax: (402)221-3680 Urban League of Nebraska,Inc. 3040 Lake Street Omaha,NE 68110 Thomas H. Warren, President/CEO thomas.warren@urbanleagueneb.org (402) 451-1066 5 Reviewed and approved 08/30/2017 CITY OF OMAHA CONTRACTOR INFORMATION FORM Date: Project Address: Owner Information Name: Address: City,St.,Zip: Phone: General Contractor Information Name: Address: City,St.,Zip: Phone: Federal Tax ID or SSN Contract Amount $ Woman Owned Business ❑Yes ❑No BRE(Business Owned Race/Ethnic)Code: (BRE Code: 1 White American; 2 Black American; 3 Native American; 4 Hispanic American 5 Asian/Pacific American; 6 Hasidic Jews _Subcontractor Information (Complete for each subcontractor for the project) Name/Address Fed Tax Contract Woman Own BRE ID/SSN Amt. Code Name: $ ❑Yes ❑No Address: City,St.,Zip: Phone: Name: $ ❑Yes ❑No Address: City,St.,Zip:, Phone: Name: $ ❑Yes ❑No Address: City,St.,Zip: Phone: Name: $ ❑Yes ❑No Address: City,St.,Zip: Phone: Name: $ ❑Yes ❑No Address: City,St.,Zip: Phone: Name: $ ❑Yes ❑No Address: City,St.,Zip: Phone: Name: $ ❑Yes ❑No Address: City,St.,Zip: Phone: • 6 Reviewed and approved 08/30/2017 Date: Project Address: Owner Information Name: General Contractor Information Name: • (BRE Code: 1 White American; 2 Black American; 3 Native American; 4 Hispanic American 5 Asian/Pacific American; 6 Hasidic Jews Name/Address Fed Tax Contract Woman Own BRE ID/SSN Amt. Name: $ ❑Yes ❑No Address: • City,St.,Zip: Phone: Name: $ ❑Yes ❑No Address: City,St.,Zip: Phone: Name: $ ❑Yes ❑No Address: City,St.,Zip: Phone: Name: $ ❑Yes ❑No Address: City,St.,Zip: Phone: Name: $ ❑Yes ❑No Address: City,St.,Zip: Phone: . Name: $ ❑Yes ❑No Address: City,St.,Zip: Phone: Name: $ ❑Yes ❑No Address: City,St.,Zip: Phone: Name: $ ❑Yes ❑No Address: City,St.,Zip: Phone: Name: $ ❑Yes ❑No Address: City,St.,Zip: Phone: • 7 Reviewed and approved 08/30/2017 DEFINITIONS: 1. American Indian or Alaska Native. A person having origins in any of the original peoples of North and South America (including Central America), and who maintains tribal affiliation or community attachment. 2. Asian. A person having origins in any of the original peoples of the Far East, Southeast Asia, or the Indian subcontinent including, for example, Cambodia, China, India, Japan, Korea, Malaysia, Pakistan,the Philippine Islands, Thailand and Vietnam. 3. Black or African American. A person having origins in any of the black racial groups of Africa. Terms such as"Haitian" or"Negro"can be used in addition to "Black"or"African American". 4. Native Hawaiian or Other Pacific Islander. A person having origins in any of the original peoples of Hawaii, Guam, Samoa or other Pacific Islands. 5. White. A person having origins in any of the original peoples of Europe, the Middle East or North Africa. 8 Reviewed and approved 08/30/2017 • • MINORITY BUSINESS/WOMEN BUSINESS ENTERPRISE AND FAIR HOUSING PLAN As Owner(s), I/we agree that my/our -contractors and subcontractors will make our best efforts to ensure the construction services, contracts and employment opportunities are affirmatively marketed to women and members of minority groups as outlined in the City of Omaha's Policy for Minority Business/Women Business Enterprise and to further Fair Housing, where applicable, in the following manner; 1. Provide employment opportunities without regard to race, color, sex, age, religion, national origin, familial or handicap status; 2. Encourage, increase and promote business and procurement opportunities for women-owned businesses; 3. Award contracts to eligible minority-owned and women-owned firms; 4. Monitor contractor and vendor equal opportunity performance. As Owner(s), , I/we agree that our contractors and subcontractors will not discriminate against any employee or applicant for employment because of race, color, sex, age, religion, national origin, familial or handicap status. As Owner(s), , I/we agree that my/our contractors and subcontractors shall in all solicitations or advertisements for employment give all qualified applicants consideration for employment without regard to race, color, sex, age, religion, national origin, familial or handicap status. As Owner(s), , I/we certify that I/we support the furtherance of fair housing choice and that I/we will not discriminate on the basis of race, color, religion, sex, national origin, familial status, marital or handicap status in the rental or sale of the assisted property nor in any activities related to the sale, rental, and operation of the assisted property in.accordance with the applicable laws and regulations. Dated this day of 20 Business or Corporation(if applicable) By: Signature of Owner/Authorized Representative Name Print Owner/Authorized Representative Name �PPOAYAN • 9 Reviewed and approved 08/30/2017 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. 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. HOMEOWNERSHIP FINANCIAL STATUS REPORT FORM (Please attach AIA G702 form and other comparable supporting documentation for expenditures) Developer Name: ' Program: CDBG • ❑ ESG 0 • Developer's Contractor: HOME ❑ Project Address: NAHTF ❑ NSP ❑ SHP 0 Loan#: Project Type: Acquisition El New Constr ❑ Rehab ❑ Reporting Period: From: to DEVELOPMENT PROJECT % BUDGET COSTS BUDGET COMPLETE REMAINING Hard costs $ % $ Soft costs: Developer's overhead* $ % $ Property Taxes $ % . $ Property Insurance $ % $ Real Estate Transfer Fees $ % $ Recording Fees $ % $ Appraisal Fee(s) $ % $ Title Insurance $ % $ Omaha 100 Loan Fee $ % $ FHAS Counseling Fee $ % $ Advertising $ % $ Utilities $ % $ Grounds Maintenance $ % $ Other(explain: $ Goo $ Other(explain: ) $ % $ Other: $ % $ TOTALS $ % $ *Developer's overhead percentage is based on the percent of hard cost work completed in the attached in AIA or comparable document. TOTAL PAY REQUEST: $ Amount Amount City Funds Other Funds FUNDING SOURCES $ $ PROJECT % BUDGET BUDGET COMPLETE REMAINING $ % $ $ % $ $ % $ Other: $ % $ Other: $ % $ Other: $ % $ TOTALS: $ % $ I certify to the best of my knowledge that the above information is correct and complete and is for the purpose set forth in the award documents. Financial records are available for audit or review. Authorized Certifying Officer Title Date Printed Name: O i • • EQUAL HOUSING OPPORTUNITY Revised and approved 11/5/2009 • NON-HOMEOWNERSHIP FINANCIAL STATUS REPORT FORM (Please attach AIA G702 form and other comparable supporting documentation for expenditures) Developer Name: Program: CDBG ❑ ESG ❑ Developer's Contractor: HOME ❑ NAHTF ❑ Project Address: NSP ❑ SHP ❑ Project Type: Acquisition ❑ Loan#: New Constr ❑ Rehab ❑ Reporting Period: From: to DEVELOPMENT PROJECT % BUDGET COSTS BUDGET COMPLETE REMAINING Hard costs $ % $ Soft costs(list): $ % $ $ % $ $ % $ $ % $ $ % $ $ % $ $ % $ $ % $ $ % $ $ % $ $ % $ $ % $ $ % $ $ % $ $ % $ TOTALS $ % $ TOTAL PAY REQUEST: $ Amount Amount City Funds Other Funds $ $ FUNDING SOURCES PROJECT % BUDGET BUDGET COMPLETE REMAINING $ % $ $ . $ % $ Other: $ % $ Other: $ % $ Other: $ % $ TOTALS: $ % $ I certify to the best of my knowledge that the above information is correct and complete and is for the purpose set forth in the award documents. Financial records are available for audit or review. Authorized Certifying Officer Title Date Printed Name: OaPPORRTUNITY Revised and approved 6/18/2010 UNITED STATES CITIZENSHIP ATTESTATION FORM FOR PUBLIC BENEFIT For the purposes of complying with Neb. Rev. Stat. §§ 4-108 through 4-114, I attest as follows: 0 I am a citizen of the United States. OR ❑ I am a qualified alien under the Federal Immigration and Nationality Act. My immigration status and alien number as follows: , and I agree to provide a copy of my USCIS (United States Citizenship and Immigration Services) documentation upon request. I hereby attest that my response and the information provided on this form and any related application for public benefits are true, complete and accurate and I understand that this information may be used to verify my lawful presence in the United States. ( PRINT NAME: By: SIGNATURE: DATE: oPPORfursiiTv Q:Library/HCD Forms/Citizenship-Attestation Form for Public Benefit 10/26/2009 AFFIDAVIT FOR EMPLOYEE CLASSIFICATION ACT STATE OF ) ) § COUNTY OF ) I, ,being first duly sworn under oath,state and depose as follows: 1. I am competent to testify to,and have personal knowledge of,the matters stated in this affidavit. 2. I am(a contractor)(the authorized agent of the contractor ). I attest to the following: (a) each individual performing services for such contractor is properly classified under the Nebraska Employee Classification Act, 2010 LB 563 ("the Act"), (b) such contractor has completed a federal I-9 immigration form and has such form on file for each employee performing services, (c) such contractor has complied with Neb. Rev. Stat. section 4-114 (federal immigration verification system), (d) such contractor has no reasonable basis to believe that any individual performing services for such contractor is an undocumented worker, and(e) as of the time of the contract, such contractor is not barred from contracting with the state or any political subdivision pursuant to the Act. FURTHER AFFIANT SAYETH NAUGHT. Affiant SUBSCRIBED AND SWORN TO before me this day of ,20 Notary Public ® . OPPORTUNITY Approved 6/1/10 City of Omaha Planning Department Housing and Community Development Division Tier II CEST Statutory Checklist(Year-Number) For Rehabilitation Programs Tier I CEST Statutory Checklist(2013-327) Project Name: Project Address: Project Activity: Program:League of Human Dignity Barrier Removal The Tier I CEST Statutory Checklist requires a Tier II Statutory Checklist the following Impact Categories: • Contamination and Toxic Substances • Explosive and Flammable Operations • Floodplain Management • Historic Preservation • Noise Control • Floodplain Insurance The following table presents the Tier II determinations for these categories. An A in the Status box indicates no compliance issues are associated with this project and the project may proceed without further consultation. A B in the Status box indicates additional steps are required to address this issue (e.g., removal of hazardous materials). Impact Categories Status Source Documentation AorB According to the Omaha Lead Registry (www.omahalead.org),the target property is located outside/within the final focus area of the Omaha Lead Superfund site. Based on the age of the home (built in t '), interior and exterior Contamination and lead-based paint hazards may be present. Lead-safe work Toxic Substances B practices are required. The City has a radon testing and mitigation policy that states that radon levels must be tested and mitigated, if necessary, when the cost of rehabilitation exceeds 50%of the assessed value of the home and Federal funding to the project exceeds$5,000.00. In this case, the estimated cost of rehabilitation is $TOTAL COST. $AMOUNT FEDERAL of Federal funding will be used, and the assessed value of the home is $YFiJSESSED VALUE. Radon testing is/is note required. Partly based on the age of the home, asbestos hazards may be present.The work plan provided could impact asbestos containing material, if any is present. If suspect material is found during work activities, further consideration must be given to potential hazards and compliance with state and federal regulations, such as Nebraska Department of Health Human Services 179 NAC 22 http://www.sos.ne.gov/rules-and- regs/regsearch/Rules/Health and Human Services System/Title- 178/Chapter-22.pdf) before proceeding. Please call Nicole Engels with questions at 402-444-5150 x2024. Based on a review of aerial photographs and the Nebraska Department of Environmental Quality's (NDEQ) interactive facility map (http://degims2.deq.state.ne.us/degflex/DEQ.html), there is • no evidence of other contaminant sources at this site or near-by. Explosives and Flammable A This project will not increase the size of the house and will not Operations enable an uninhabitable house to be habitable. According to FEMA Flood Insurance rate map 31055C####H the Floodplain 7. . Management A site is/is n in ot a special flood hazard zone. Please see the attached web page print out. According to the City's Historic Preservation Officer, the building Historic Preservation A is not historic. See the attached Section 106 Review Request form dated August 28, 2017. There are noise sources with recorded traffic levels located within 1,000 feet of the target property. These are IROADS'. There are V# rail traffic rail noise sources within 3,000 feet of the target property. ft is assumed that these road noise sources will hot significantly impact the target property Noise.Control A There are several airport runways within 15 miles of the target property, but no noise elevation data is available for the target property. It is assumed that airport noise will not impact the target property. There pre no;loud or impulsive noise sources near the target property. • HUD's Day-Night Noise Level calculator was used to determine the noise level at the target property. The data used is the calculation, and the calculation results are attached. The noise level was##decibels, which is in HUD's eA eptable Noise Level ange. HUD further requires a 10-year noise projection, when possible. To do this, the traffic counts in the model were increased by 10% because current population growth estimates assume Omaha will grow by 10%over the next decade. The noise level increased to decibels, which is still within HUD's cceptable Noise Level range. Further noise mitigation is not required. Flood Disaster A The property is not located in a flood plain. See flood plain Protection Act management, above. A project-specific Tier II environmental review has been performed at the above location in compliance with HUD environmental review regulations (24 CFR Part 58) and related laws, authorities and requirements. The review has been performed prior to the commitment of HUD or non-HUD funds, as required by §58.22(a) and (c). This review shall be retained as a component of the City's Environmental Review Record (ERR). Consult the Tier I CEST Statutory Checklist identified above for information regarding compliance with other laws and authorities for this HUD-assisted project or program. Prepared by: Date: Approved by: Date: 24 CFR 85.43 ENFORCEMENT (a) Remedies for non-compliance. If a grantee or sub-grantee materially fails to comply with any term of an award,whether stated in a federal statute or regulation, an assurance, in a State plan or application, a notice of award, or elsewhere, the awarding agency may take one or more of the following actions, as appropriate in the circumstances: (1) Temporarily withhold cash payments pending correction of the deficiency by the grantee or sub-grantee or more severe enforcement action by the awarding agency, (2) Disallow(that is, deny both use of funds and matching credit for) all or part of the cost of the activity or action not in compliance, (3) Wholly or partly suspend or terminate the current award for the grantee's or sub-grantee's program, (4) Withhold further awards for the program, or, (5) Take other remedies that may be legally available. (b) Hearings, appeals. In taking an enforcement action, the awarding agency will provide the grantee or sub-grantee an opportunity for such hearing, appeal or other administrative proceeding to.which the grantee or sub-grantee is entitles under any statute or regulation applicable to the action involved. (c) Effects of suspension and termination. Costs of grantee or sub-grantee resulting from obligations incurred by the grantee or sub-grantee during a suspension or after termination of an award are not allowable unless the awarding agency expressly authorizes them in the notice of suspension or termination or subsequently. Other grantee or sub-grantee costs during suspension or after termination which are necessary and not reasonably avoidable are allowable if: (1) The costs result from obligations which were properly incurred by the grantee or sub- grantee before the effective date of suspension or termination,are not in anticipation of it, and, in the case of a termination, are non-cancelable, and, (2) The costs would be allowable if the award were not suspended or expired normally at the end of the funding period in which the termination takes effect. (d) Relationship to Debarment and Suspension. The enforcement remedies identified in this section, including suspension and termination, do not preclude grantee or sub-grantee from being subject to "Debarment and Suspension"under EO 12549 (see § 85.35). 24 CFR 85.44 TERMINATION FOR CONVENIENCE Except as provided in § 85.43 awards may be terminated in whole or in part only as follows: • (a) By the awarding agency with the consent of the grantee or sub-grantee in which case the two parties shall agree upon the termination conditions, including the effective date and in the case of partial termination,the portion to be terminated, or (b) By the grantee or sub-grantee upon written notification to the awarding agency, setting forth the reasons for such termination, the effective date, and in the case of partial termination, the portion to be terminated. However, if, in the case of a partial termination, the awarding agency determines that the remaining portion of the award will not accomplish the purposes for which the award was made, the awarding agency may terminate the award in its entirety under either § 85.43 or Paragraph(a) of this section. OPPORRTUNITY Rev. 5/7/08 EQUAL EMPLOYMENT OPPORTUNITY CLAUSE During the performance of this Contract, the Contractor agrees as follows: (1) The Contractor and its subcontractors shall not discriminate against any employee or applicant for employment because of race, religion, color, sex, age, sexual orientation, gender identity, national origin, disability or familial status. As used herein, the work "treated" shall mean and include, without limitation, the following: Recruited, whether by advertising or by other means; compensated; selected for training, including apprenticeship; promoted; upgraded; demoted; downgraded; transferred; laid off; and terminated. The Contractor agrees to and shall post in conspicuous places, available to employees and applicants for employment, notices to be provided by the contracting officers setting forth the provisions of this nondiscrimination clause. (2) The Contractor and its subcontractors shall, in all solicitations or advertisements for employees placed by or on behalf of the Contractor, state that all qualified applicants will receive consideration for employment without regard to race, religion, color, sexual orientation, gender identity, sex, national origin, age, disability or familial status. (3) The Contractor and its subcontractors shall send to each representative of workers with which he has a collective bargaining agreement or other contract or understanding a notice advising the labor union or worker's representative of the Contractor's commitments under the equal employment opportunity clause of the City and shall post copies of the notice in conspicuous places available to employees and applicants for employment. (4) The Contractor and its subcontractors shall furnish to the City's Human Rights and Relations Contract Compliance Officer all federal forms containing the information and reports required by the federal government for federal contracts under federal rules and regulations, including the information required by Omaha Municipal Code Sections 10-192 to 10-194, inclusive, and shall permit reasonable access to his records. Records accessible to the Human Rights and Relations Contract Compliance Officer shall be those which are related to Paragraphs (1) through (7) of this Exhibit and only after reasonable notice is given to the Contractor. The purpose for this provision is to provide for investigation to ascertain compliance with the program provided for herein. (5) The Contractor and its subcontractors shall take such actions with respect to any subcontractor as the City may direct as a means of enforcing the provisions of Paragraphs (1) through (7) herein, including penalties and sanctions for noncompliance; however, in the event the Contractor becomes involved in or is threatened with litigation as the result of such directions by the City, the City will enter into such litigation as is necessary to protect the interests of the City and to • Revised and approved 5/23/2012 • effectuate the provisions of this division; and in the case of contracts receiving federal assistance, the Contractor or the City may request the United States to enter into such litigation to protect the interests of the United States. (6) The Contractor shall file and shall cause his subcontractors, if any, to file compliance reports with the Contractor in the same form and to the same extent as required by the federal government for federal contracts under federal rules and regulations. Such compliance reports shall be filed with the Human Rights and Relations Contract Compliance Officer. Compliance reports filed at such times as directed shall contain information as to the employment practices, policies, programs and statistics of the Contractor and his subcontractors. (7) The Contractor shall include the provisions of Paragraphs (1) through (7) of this Section, "Equal Employment Opportunity Clause", and Omaha Municipal Code Section 10-193 in every contract, subcontract or purchase order so that such provisions will be binding upon each subcontractor or vendor. (Code 1980, Section 10-192; Ordinance No. 35344, Sections 1, 9-26-00) Revised and approved 5/23/2012 Federal Sub-award Reporting System(FSRS) 9 Digit DUNS Number: . . Organization Name:: Address:.,. city Stays:: Zip fade+4: Question 1:During your organizations preceding completed fiscal year,did the legal entity to which the DUNS number ' belongs receive(1)80 percent or more of its annual gross revenues in U.S.federal contracts,subcontracts, loans,grants, subgrants,and/or cooperative agreements;and:(2)$25,000,000 or more in annual gross revenues from U.S.federal contracts,subcontracts,loans,grants,subgrants,and/or cooperative agreements? 0 NO y.y S If•YES please answer Question 2 4 G r Question 2:Does the public have access to information about the compensation of the executives in your organization (the legal entityto which the DUNS number provided belongs)through periodic reports filed under section 13 a or p g P P { ) 15(d)of the Securities,Exchange Act of 1934(15 U.S.C.78m(a),78o(d)or section 6104-of the Internal.Revenue Code of 1986? i. YES ND- If NO please answer Question 3 Question 3:What are the Names and Total Con pensation for the top 5 employees in your organization? Name Compensation • 2 $ 3 4 >,s.. __ Y 5 $. Signature of Authorized Official DmtE• • Requirements for Federal Funding Accountability and. Transparency Act Implementation In September 2010,the Office of Management and Budget issued Interim Final Guidance in the Federal Register(Volume 75, No. 177, September 14, 2010, 2 CFR Part 170)to establish reporting requirements necessary for the implementation of the Federal Funding.Accountability and Transparency Act of 2006 (Pub. L. 109-282),as amended by section 6202 of Public Law 110--252, This award term implements those requirements and is located at 2 CFR Part 170. Learn more Appendix A to Part 170—Award Term Reporting Subawards and Executive Compensation. a. Reporting of first-tier subawards. 1. Applicability. Unless you are exempt as provided in paragraph d. of this award term, you must report each action that obligates $25,000 or more in Federal funds that does not include Recovery funds(as defined in section 1512(a)(2) of the American Recovery and Reinvestment Act of 2009, Pub. L. 111-5)for a . 3 subaward to an entity (see definitions in paragraph e. of this award term). 2=; Where and when to report. is You must report each obligating action described in paragraph a.1. of this • award term to the Federal Funding Accountability and Transparency Act Subaward Reporting System (FSRS). ii: For subaward information, report no later,than the end of the month following the month in which the obligation was made. (For example, if the obligation was made on November 7, 2010, the obligation must be reported by no later than December 31,2010.) What to report. You must report the information about each obligating action that i. the submission instructions posted at http:i/www.fsrs.gov specify. b. Reporting Total Compensation of Recipient Executives., 1. Applicability and what to report. You must report total compensation for each of your five most highly compensated executives for the preceding completed fiscal year, if— I, the total Federal funding authorized to date under this award is $25,000 or more; ii in the preceding fiscal year, you received— A. 80 percent or more of your annual gross revenues from Federal procurement contracts (and subcontracts) and Federal financial assistance subject to the Transparency-Act, as defined at 2 CFR 170.320 (and subawards); and • "B: $25,000,000 or more in annual gross revenues from Federal procurement contracts (and subcontracts) and Federal financial • assistance subject to the Transparency Act, as defined at 2 CFR • 170.320 (and subawards); and The public does not have access to information about the compensation of the executives through periodic reports filed under section 13(a)or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m(a), 78o(d)) or section 6104 of the Internal Revenue Code of 1986. (To determine if • the public has access to the compensation information, see the U.S.. Security and Exchange Commission total compensation filings at the- Executive Compensation page of the SEC website.) . 2. Where and when to report. You must report executive total compensation described in paragraph b.1. of this award term: As part of your registration profile at the Central Contractor Registry. fi. By the end of the month following the month in which this award is made, and annually thereafter. • c. Reporting of Total-Compensation of Subrecipient Executives. 1; Applicability and what to report. Unless you are exempt as provided in paragraph d.:of this award term, for each first-tier subrecipient under this award, you shall ` report the names and total compensation of each of the subrecipient's five most. • highly compensated executives for the subrecipient's preceding completed fiscal year, if— , . in the subrecipient's preceding fiscal year, the subrecipient received— A. 80 percent or more of its annual gross revenues from Federal procurement contracts (and subcontracts)and Federal financial assistance subject to the Transparency Act, as defined.at 2 CFR 170.320 (and subawards); and • . a,, $25,000,000 or more in annual gross revenues from Federal procurement contracts(and subcontracts), and Federal financial assistance subject to the Transparency Act(and subawards); and The public does not have access"to information about the compensation of the executives through periodic reports filed under section 13(a) or 15(d) of the Securities Exchange.Act of 1934 (15 U.S.C. 78m(a), 78o(d)) or section 6104 of the Internal Revenue Code of 1986. (To determine if the public has access to the compensation information, see the U.S. Security and Exchange Commission total compensation filings at the Executive Compensation page of the SEC website.) 2, Where and-when to report. You must report subrecipient executive total compensation described in paragraph c.1. of this award term: To the recipient. • . -li.. By the end of the-month following the month during which you make the -subaward. For example, if a subaward is obligated on any date during the month of October of a given year(i.e., between October 1 and 31), you • must report any required compensation information of the subrecipient by November 30 of that year. d. Exemptions if, in the previous tax year, you had gross income, from all sources, under$300,000,you are exempt from the requirements to report: l: i:. Subawards,and • The total,compensation of the five most highly compensated executives of'any subrecipient. e. Definitions. For purposes of this award term: 1. "Entity" means all of the following, as defined in CFR part 25: 1 A Governmental organization,which is a State, local government, or Indian tribe; ii. A foreign public entity.; A domestic or foreign nonprofit organization; iv. A domestic or foreign for-profit organization; v. A Federal agency, but only as a subrecipient under an award or subaward to a non-Federal entity. 2: "Executive" means officers, managing partners, or any other employees in management positions. "Subsward": i. This term means a legal instrument to provide support for the performance of any portion of the substantive project or program for which you received this award and that you as the recipient award to an eligible subrecipient. ii.: The term does not include your procurement of property and services needed.to carry out the project or program(for further explanation, see, Sec. II .210 of the attachment to OMB Circular A-133, "Audits of States, Local Governments, and Non-Profit Organizations"). A subaward may be provided through any legal agreement, including an agreement that you or a subrecipient considers a contract. 4. "Subrecipient" means an entity that: i; Receives a subaward from you (the recipient) under this award; and 'li. Is accountable to you for the use of the Federal funds provided by the subaward. 5. "Total compensation" means the cash and noncash dollar value earned by the executive during the recipient's or subrecipient's preceding fiscal year and includes the following (for more information see 17 CFR 229.402(c)(2)): i, Salary and bonus. ii. Awards of stock, stock options, and stock appreciation rights. Use the dollar amount recognized for financial statement reporting purposes with respect to the fiscal year in accordance with the Statement of Financial Accounting Standards No. 123 (Revised 2004) (FAS 123R), Shared Based Payments. M. Earnings for services under non-equity incentive plans. This does not -include group life, health, hospitalization or medical reimbursement plans that do not discriminate in favor of executives, and are available generally to all salaried employees. i+ , Change in pension value. This is the change in present value of defined benefit and actuarial pension plans. v: Above-market earnings on deferred compensation which is not tax- qualified. vl. Other compensation, if the:aggregate value of all such other compensation (e.g. severance, termination payments, value of life insurance paid on behalf of the employee,perquisites or property)for the executive exceeds $10,000. } il+ IP'' ti 1 • NO. 42?2) Item Submitted By: Pat Evans/Christina Williamson Department: Planning (HCD) Council Meeting Date: May 1, 2018 Res. that, the Agreement, as recommended by the Mayor, between the City of Omaha and the League of Human Dignity, Inc., 5513 Center Street, Omaha, Nebraska 68106, in the amount of $50,000.00 in FY 2017 funds for barrier removal services for ten (10) housing units within the city limits of the City of Omaha for the period from January 1, 2018 through March 31, 2019, is hereby approved. (Funds shall be paid from the Community Development Block Grant, Fund No. 12186, and Organization No. 128072.) 095 Presented to City Council May 1, 2018 APPROVED 7-0 8lIzbetll "killer City Clerk