RES 2016-0209 - Agmt with Housing Authority for continuum of care homeless assistance program funding „./
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�4rED FEts* :_;' u, James R.Thele
City of Omaha ` r Director
Jean Stothert,Mayor
February 23, 2016
Honorable President
and Members of the City Council,
The attached Resolution authorizes the City of Omaha to accept and the Mayor to execute an
agreement between the City of Omaha and the Housing Authority of the City of Omaha (OHA).
This agreement provides Continuum of Care Program funding in the amount of$180,613.00 for
one year of tenant rental assistance for a project to be administered by the OHA (Organization
128034) entitled, "Rental Assistance for the Chronically Homeless” (FY 2014, Fund 12196).
The City of Omaha will pay the Omaha Housing Authority $169,488.00 over the one year term
of the agreement for rental assistance and program delivery costs. Such funds will be paid in
accordance with Continuum of Care Program Regulations, 24 CFR 578. The City will retain
$11,125.00 to pay for the general administration of the project.
In Funding Year 2014, the Department of Housing and Urban Development (HUD) advertised its
annual competition for Continuum of Care for the Homeless Assistance. This funding
opportunity is designed to help communities develop "continuum of care" systems for combating
homelessness. All Metro Area Continuum of Care agencies and programs were invited to
participate in this process.
The "Rental Assistance for the Chronically Homeless" project and the other Continuum of Care
projects receiving funding will help provide a comprehensive approach to the development and
implementation of housing and service delivery programs designed to help homeless individuals
and families move to permanent housing and self-sufficiency.
This Resolution authorizes the Mayor to approve all revisions to this Continuum of Care
Program Grant Agreement, as approved by HUD, except that revisions involving a change in the
subrecipient, a change in the project site, or a change in the category of participants to be served
shall require the prior approval of the City Council.
Honorable President
and Members of the City Council
Page 2
The Contractor has on file a current Annual Contract Compliance Report Form (CC-1). The
contract Compliance Ordinance requires that the Human Rights and Relations Director conduct a
pre-award review of the employment practices of a contractor with a City contract of
$200,000.00 or more. As is City policy, the Human Rights and Relations Director will review
the Contract Compliance Ordinance to ensure Contractor compliance.
Your favorable consideration of this Resolution is requested.
Sincerely, Referred to City Council for Consideration:
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ames R. Th Date Mayor's Office Date
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Planning Dire Y
Approved as to Funding: Approved:
Steph B. Curtiss„quoate Spencer K. Danner, Jr. Date
Finance Director Human Rights & Relation irector
2308 dlh
AGREEMENT
BETWEEN THE CITY OF OMAHA AND THE HOUSING AUTHORITY OF THE
CITY OF OMAHA FOR THE USE OF CONTINUUM OF CARE
HOMELESS ASSISTANCE PROGRAM FUNDS
Table of Contents
SECTION 1. DEFINITIONS —ABBREVIATIONS
SECTION 2. DUTIES AND CONDITIONS OF CITY FINANCING
SECTION 3. DUTIES AND RESPONSIBILITIES OF THE CONTRACTOR
SECTION 4. TERM OF THE AGREEMENT
SECTION 5. MUTUAL AGREEMENTS BETWEEN CITY AND CONTRACTOR
SECTION 6. CONTRACTOR'S COMPLIANCE WITH OTHER FEDERAL
REGULATIONS
SECTION 7. DEFAULT PROVISIONS
SECTION 8. AUTHORIZED REPRESENTATIVES
THIS AGREEMENT is entered into by and between the City of Omaha, a Municipal
Corporation in Douglas County, Nebraska (sometimes hereinafter referred to as "City") and the
Housing Authority of the City of Omaha (sometimes hereinafter referred to as "Contractor"),
1805 Harney Street, Omaha, Nebraska, 68102 to provide funding and support to the Housing
Authority of the City of Omaha for the City's "Rental Assistance for the Chronically Homeless"
Program on the terms, conditions and provisions as set forth below:
RECITALS:
WHEREAS, the City of Omaha is a Municipal Corporation located in Douglas County,
Nebraska, and is organized and 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, in Funding Year 2014, the U. S. Department of Housing and Urban
Development published in the Federal Register a Notice of Funding Availability for Continuum
of Care Homeless Assistance designed to help communities develop Continuum of Care systems
to assist homeless persons; and,
WHEREAS, the Metro Area Continuum of Care for the Homeless is comprised of
organizations providing shelter and services to homeless individuals and families on an area-
wide basis; and,
WHEREAS, the City of Omaha participated in an inclusive community process for
developing and implementing a Continuum of Care strategy which included participation by the
membership of the Metro Area Continuum of Care for the Homeless; and,
WHEREAS, the City of Omaha developed and submitted to the U. S. Department of
Housing and Urban Development a consolidated application with Heartland Family Service, The
Salvation Army, Williams Prepared Place and others for Continuum of Care Funding Assistance;
and,
WHEREAS, on January 23, 2015, the U. S. Department of Housing and Urban
Development notified the City of Omaha of the selection of the project entitled, "Rental
Assistance for the Chronically Homeless" for funding under the Funding Year 2014 Continuum
of Care Program; and,
WHEREAS, the U. S. Department of Housing and Urban Development has awarded
funds and has assigned a grant project number as follows: NE0039L7D011405 for the "Rental
Assistance for the Chronically Homeless" project in the amount of $180,613.00 (Funding Year
2014, Fund 12196, Organization 128034); and,
WHEREAS, rental assistance for the chronically homeless will add to the housing and
service delivery programs intended to help homeless individuals and families move to permanent
housing and self-sufficiency; and,
WHEREAS, this Resolution shall authorize the Mayor of the City of Omaha to execute
required Continuum of Care Program grant agreements with the U. S. Department of Housing
and Urban Development (HUD); and,
WHEREAS, from time to time it is necessary for HUD and the City to make revisions to
such Continuum of Care Program grant agreements including the shifting of funds among
categories and additions or deletions in the line items within Support Services and Operations
Budgets which additions and deletions do not change the original contract amount; and,
WHEREAS, it is in the best interest of the City for the City Council to authorize the
Mayor to approve all revisions to this Continuum of Care Program Grant Agreement, as
approved by HUD; except that revisions involving a change in the subrecipient, a change in the
project site, or a change in the category of participants to be served are considered substantial
changes requiring the prior approval of the City Council.
NOW, THEREFORE, in consideration of these mutual covenants, the Housing Authority
of the City of Omaha and the City of Omaha do hereby agree as follows:
SECTION 1. DEFINITIONS - ABBREVIATIONS
1.1 "City" shall mean - the City of Omaha, a Nebraska Municipal Corporation.
1.2 "Contractor" shall mean — the Housing Authority of the City of Omaha, a Body
Politic and Corporate (referred to herein as the "Omaha Housing Authority"),
1805 Harney Street, Omaha, Nebraska 68102 (See Exhibit"A").
1.3 "Director" shall mean - the Planning Department Director of the City of Omaha.
1.4 "Recipient" shall mean - the City of Omaha.
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1.5 "Subrecipient" shall mean - a public or private non-profit agency, authority or
organization receiving Continuum of Care Homeless Assistance funds to
undertake eligible activities. In this Agreement, the subrecipient is the Omaha
Housing Authority.
1.6 "HUD" shall mean - the U.S. Department of Housing and Urban Development.
1.7 "Rental Assistance for the Chronically Homeless" shall mean - the program
conducted under the provisions of Title IV of the Stewart B. McKinney Homeless
Assistance Act (McKinney Act, 42 USC 11301) and the Code of Federal
Regulations (24 CFR Part 578) (See Exhibit"B").
1.8 "Continuum of Care Homeless Assistance Funds" shall mean - that portion of the
Continuum of Care Program Grant (Fund Number 12196) awarded to the City,
Grant # NE0039L7D011405, (Organization Number 128034) as may be available
during Program Year 2015 (Funding Year 2014) for the use specified herein, in an
amount not to exceed $180,613.00 subject to the terms, conditions, and
requirements of said Grant.
1.9 "Tenant-based Rental Assistance" shall mean—a form of rental assistance in which
the assisted tenant may move from a dwelling unit with a right to continued
assistance (24 CFR 578.51c).
1.10 "TBRA" shall mean—Tenant-Based Rental Assistance.
1.11 "Chronic Homelessness" shall mean - an unaccompanied homeless individual
with a disabling condition who has either been continuously homeless for a year
or more or has had at least four (4) episodes of homelessness in the past three (3)
years. To be considered chronically homeless, persons must have been sleeping in
a place not meant for human habitation (e.g., living on the streets) and/or in
emergency shelter during that time. Note that this definition of chronic
homelessness does not include families. In addition, to be identified as chronically
homeless, an individual must have a disabling condition, defined as follows: A
diagnosable substance use disorder, serious mental illness, developmental
disability, or chronic physical illness or disability, including the co-occurrence of
two or more of these conditions.
1.12 "ServicePoint" shall mean - an information management system developed by
Bowman Internet Systems in Shreveport, LA, permitting social service agencies
to share data about clients, resources, and services.
1.13 "Application" shall mean — the application submitted by the City on the basis of
which Continuum of Care Program Funds were approved by HUD. Included in
the application are any certifications and assurances and any information or
documentation required to meet grant conditions. A copy of the Application is
attached hereto and incorporated herein by this reference as though fully set forth
(see Attachment 1).
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1.14 "Continuum of Care" shall mean - the coordinated and responsive network of
programs and services providing emergency shelter, transitional housing and
supportive services to the Omaha area's homeless individuals and families, or
near homeless individuals and families.
1.15 "Contract Completion" shall mean —the complete expenditure of awarded funds,
the completion of the Scope of Work as defined in Exhibit "C", or the expiration
of the time frame of the Agreement, whichever comes first.
1.16 "Scope of Work" shall mean — the housing and/or supportive services to be
provided homeless persons for the term of this Agreement; this work is detailed in
Exhibit"C".
1.17 "Procedures" shall mean — the procedures developed by the City of Omaha for
managing Continuum of Care Program funds provided by HUD which describe
how units will be identified and selected; how the responsibility for inspections
will be handled; the process for deciding which unit a participant will occupy;
how participants will be placed in, or assisted in finding appropriate housing; how
rent calculations will be made and the amount of rental assistance payments
determined; and what safeguards will be used to prevent the misuse of funds.
SECTION 2. DUTIES AND CONDITIONS OF CITY FINANCING
2.1 Subject to and conditioned upon actual receipt of same, the City agrees to make
available to the Contractor One Hundred Sixty-Nine Thousand Four Hundred
Eighty-Eight Dollars ($169,488.00) in Continuum of Care Program Funds (Fund
12196, Organization 128034, Grant # NE0039L7D011405) for the purposes set
forth in this Agreement, and as detailed in Exhibit"C" Scope of Work.
2.1.1 City funding pursuant to this Section shall be contingent upon receipt of
and subject to the availability of Continuum of Care Program funds in
amounts adequate to meet any contractual obligations in force upon the
date of execution of the Agreement as well as this proposed obligation.
Should adequate funding not be available, the City shall notify the
Contractor as soon as reasonably possible. At that time, the
responsibilities of the Contractor under Section 3 of this Agreement
shall be released, the provisions of Section 5, Paragraph 5.8 will be
exercised and the Agreement will be terminated.
2.1.2 Reimbursement shall be on a monthly basis for the attached budget line
item expenditures. Payments shall be made on the basis of monthly
requests for payment and shall be reimbursements for actual
expenditures. The Annual Operating Budget is attached as Exhibit"D".
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2.1.3 Monthly billing will be submitted to the Director by the Contractor with
the monthly progress report. The monthly bill and monthly progress
report is due not later than fifteen (15) days following each monthly
reporting period.
2.1.4 The City shall review and monitor the required monthly reports that
identify the progress/accomplishments of the Contractor on the activities
included in this Agreement and on contracts entered into with third
parties pursuant thereto.
2.1.5 The City shall prepare monthly payment vouchers for the Contractor
based upon the Contractor's monthly progress report and request for
payment.
2.1.6 No financial assistance provided pursuant to this Agreement may be
used to replace State or local funds previously used, or designated for
use, to assist homeless persons.
2.1.7 Eligible Contractors. Contractor shall submit a certificate verifying that
Contractor is an eligible recipient for federal funding, i.e., has not been
debarred or suspended by HUD. In addition, certification shall be
submitted from each contractor or subcontractor to be used on the
Project to the effect that each contractor or subcontractor has not been
debarred or disqualified by HUD (24 C.F.R. Part 5 and 24 C.F.R.
570.609 — see Exhibit "E"). In addition, Contractor hereby certifies that
it is in good standing with the Department of Health and Human
Services. The Director shall approve all contractors and subcontractors
prior to being hired by the Contractor.
SECTION 3. DUTIES AND RESPONSIBILITIES OF THE CONTRACTOR
PROJECT PERFORMANCE
3.1 The Contractor shall administer the "Rental Assistance for the Chronically
Homeless" program in accordance with the Continuum of Care Program
regulations found at 24 CFR 578 (Exhibit "B").
3.2 The Contractor shall use the Continuum of Care Program Funds to provide tenant
rental assistance to chronically homeless individuals with special emphasis on
those with a serious mental illness, a chronic substance abuse disorder, or both as
identified and documented by Metro Area Continuum of Care agencies
(Community Alliance Rehabilitation Services, Siena/Francis House, The
Salvation Army, among others).
3.3 Metro Area Continuum of Care agencies (Community Alliance Rehabilitation
Services, Siena/Francis House, The Salvation Army, among others) shall identify,
document, and refer eligible clients to Contractor for tenant rental assistance.
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3.4 Metro Area Continuum of Care agencies (Community Alliance Rehabilitation
Services, Siena/Francis House, The Salvation Army, among others) shall
coordinate and provide supportive services to clients receiving tenant rental
assistance in an amount equal in value to $45,154.00 and shall provide the
documentation of these supportive services to the Contractor, such services
include outreach, case management, psychiatric assessment, diagnosis and
treatment, psychiatric medications, day rehabilitation, vocational services,
community support services and assertive community treatment services (see
Exhibit "C").
3.5 Metro Area Continuum of Care agencies (Community Alliance Rehabilitation
Services, Siena/Francis House, The Salvation Army, among others) shall locate
clients in apartment housing within walking distance to public transportation and
in close proximity to amenities such as grocery store, medical and mental health
services, pharmacy, places of worship and recreational opportunities.
REPORTING
3.6 The Contractor shall submit monthly progress reports to the Director delineating
Contractor and Metro Area Continuum of Care agency accomplishments for the
previous 30 day period on the specific activities undertaken pursuant to this
Agreement.
3.7 The Contractor shall submit monthly Reimbursement Requests to the Director
delineating the revenue and line item expenditures for services undertaken
pursuant to this Agreement by the Contractor. In addition, a monthly check
register is to be submitted listing each expenditure by check number, payee, date
and amount.
FINANCIAL MANAGEMENT
3.8 Audit. The Contractor shall comply with all provisions and regulations of the
Continuum of Care Program and have an annual audit completed in compliance
with 2 CFR, Part 200.5. A copy of the audit shall be provided to the Director. 2
CFR, Part 200.5 is attached to this Agreement as Exhibit "F". The auditor shall
determine the appropriate type of audit to be conducted; i.e., limited scope or full
compliance. A single audit is not an allowable expense unless the Contractor
expends total Federal funds over $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's expense is less than
$750,000.00 in each fiscal year.
3.8.1 Any deficiencies noted in audit reports must be fully cleared by the
Contractor within 30 days after receipt of audit by the Contractor.
Failure of the Contractor to comply with the above audit requirements
will constitute a violation of this Agreement and may result in the
withholding of future payments and may constitute a default subject to
termination according to Section 5.8 referenced herein.
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3.9 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 "G", attached hereto and incorporated herein as
though fully set forth).
3.10 Cost Principals. The Contractor shall comply with the requirements and the
standards of 2 CFR, Part 225, "Cost Principles for State, Local and Indian Tribal
Governments" (Exhibit "H"), and with the requirements of 2 CFR, Part 215,
Uniform Administrative Requirements For Grants and Agreements With
Institutions of Higher Education, Hospitals, and Other Non-Profit Organizations"
(Exhibit "G"). Both Exhibits are attached hereto and incorporated herein as
though fully set forth.
3.11 Release of Information. The Contractor and Metro Area Continuum of Care
agencies participating in this project specifically hereby state, agree and certify
that they are familiar with the limited purpose set forth in the Federal Laws, Rules
and Regulations, and in the laws of the State of Nebraska, for which personal
information requested may be used and that the information received will be used
solely for those limited purposes and not to harass, degrade or humiliate any
person. The information released shall be used solely for the limited purpose
stated, and the Contractor and Metro Area Continuum of Care agencies
participating in this project further agree to indemnify and hold harmless the City
of Omaha for any liability arising out of the improper use by the Contractor or
Metro Area Continuum of Care agencies of information provided.
3.12 Documentation & Record-Keeping. The Contractor and Metro Area Continuum
of Care agencies participating in this project shall maintain such records and
accounts, including property, personnel and financial records, as are deemed
necessary by the City to assure a proper accounting for all expenses. The
Comptroller General of the United States of America or any duly authorized
representatives, or any duly authorized representatives of the City of Omaha, as
approved by the Planning Director, shall have access to any books, documents,
papers, records and accounts of the Contractor and Metro Area Continuum of
Care agencies participating in this project or subcontractors which are directly
pertinent to this undertaking for the purpose of making audit, examination,
excerpts and transcriptions. Such records and accounts shall be retained for five
years from the contract period completion. Any contract entered into by the
Contractor and Metro Area Continuum of Care agencies participating in this
project with any Subcontractors shall include this Section to ensure said access.
3.12.1 The Contractor and Metro Area Continuum of Care agencies involved
with this project shall keep any records for five years after expiration of
agreement and make any reports (including the Annual Progress Report
and other reports pertaining to race, ethnicity, gender, and disability
status) that HUD may require within the time frame required.
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3.13 Metro Area Continuum of Care agencies participating in this project shall conduct
an ongoing assessment of the supportive services required by the homeless
persons being served by the project and the availability of such services, and
make adjustments as appropriate. Such services shall be assessed and determined
to be reasonable.
3.14 Participation of Homeless Persons. The Contractor must provide for the
participation of not less than one homeless individual or formerly homeless
individual on the board of directors or other equivalent policymaking entity to the
extent that such entity considers and makes policies and decisions regarding any
project, supportive services, or assistance provided under this part. This
requirement is waived if the Contractor is unable to meet such requirement and
obtains HUD approval for a plan to otherwise consult with homeless or formerly
homeless persons when considering and making policies and decisions (578.75(g)
—see Exhibit "B").
3.15 The Contractor must, to the maximum extent practicable, involve homeless
individuals and families, through employment, volunteer services, or otherwise, in
constructing, rehabilitating, maintaining, and operating the project and in
providing supportive services for the project.
3.16 Continuum of Care Requirements. The Contractor shall regularly and reliably
attend Metro Area Continuum of Care for the Homeless (MACCH) monthly
meetings, ensure that all program information is listed in the MACCH Directory,
participate in the MACCH client feedback process, install and implement the
HMIS as defined in Section 1.12, and participate in the MACCH point-in-time
housing count (as applicable).
3.17 Match Requirement. Metro Area Continuum of Care agencies participating in
this project shall meet the "matching" requirement of the United States
Department of Housing and Urban Development Continuum of Care Homeless
Assistance Program by providing and documenting the receipt of supportive
services equal to or greater than Forty-Five Thousand One Hundred Fifty-Four
Dollars ($45,154.00); supportive service matching requirements for this project
are detailed in Exhibit"B" (HUD 24 CFR Part 578.73).
3.18 Minority Business/Women Business Enterprise Plan. The Contractor shall make
its best efforts to ensure that construction services, contracts and employment
opportunities are affirmatively marketed to women and members of minority
groups. As used in this Agreement, the term "women and members of minority
groups" means a business at least fifty-one percent (51%) owned and controlled
by minority group members or women (Attachment 3).
SECTION 4. TERM OF THE AGREEMENT
This Agreement shall be in full force and effect from August 1, 2015 through and
including July 31, 2016.
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SECTION 5. MUTUAL AGREEMENTS BETWEEN CITY AND CONTRACTOR
5.1 Captions. Captions used in this Agreement are for convenience and are not used
in the construction of this Agreement.
5.2 Applicable Law. Parties to this Agreement shall conform with all existing and
applicable City ordinances, resolutions, state laws, federal laws, and all existing
and applicable rules and regulations. Nebraska law will govern the terms and the
performance under this Agreement.
5.3 Interest of the City. Pursuant to Section 8.05 of the Home Rule Charter, no
elected official or any officer or employee of the City shall have a financial
interest, direct or indirect, in any City agreement. Any violation of this section
with the knowledge of the person or corporation contracting with the City shall
render the Agreement voidable by the Mayor or Council.
5.4 Merger. This Agreement shall not be merged into any other oral or written
agreement, lease or deed of any type.
5.5 Modification. This Agreement contains the entire agreement of the parties. No
representations were made or relied upon by either party other than those that are
expressly set forth herein. No agent, employee, or other representative of either
party is empowered to alter any of the terms herein unless done in writing and
signed by an authorized officer of the respective parties, pursuant to Section 10-
142 of the Omaha Municipal Code.
5.6 Assignment. The Contractor may not assign its rights or obligations under this
Agreement without the express prior written consent of the City.
5.7 Strict Compliance. All provisions of this Agreement and each and every
document that shall be attached shall be strictly complied with as written, and no
substitution or change shall be made except upon written direction from
authorized representatives of the parties.
5.7.1 In accordance with Section 5.5 Modification, above, such authorized
representative may revise the Support Services and Operations Budgets,
Exhibit "C", as may be necessary, provided such revisions are deemed
by the Director to be non-substantial. Substantial changes shall be
defined as those which include a change in the subrecipient, a change in
the project site, or a change in the category of participants to be served.
All other changes are considered to be non-substantial, including the
shifting of funds among categories and additions or deletions in the
Support Services and Operations Budgets (Exhibit "C" and Exhibit
"D"). In any event, HUD shall be notified in writing of all such
changes. If HUD elects to amend its Continuum of Care Homeless
Assistance Agreement with the City of Omaha pursuant to such
revisions, the Mayor is authorized to effect such amendment.
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5.8 Termination. This Agreement may be terminated by either party upon thirty (30)
days written notice to the other party. Said notice shall be given when received
by certified mail at the other party's usual place of business. This Agreement
may also be suspended or terminated in accordance with 24 CFR 85.43,
Enforcement or 24 CFR 85.44, Termination for Convenience (Exhibit "I"). 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.
5.9 Reversion of Assets. Upon the expiration of this Agreement the Contractor shall
transfer to the City of Omaha any Continuum of Care Homeless Assistance funds
on hand at the time of expiration and any accounts receivable attributable to the
use of Continuum of Care Homeless Assistance funds. Additionally, the
Contractor shall ensure that any real property under the Contractor's control that
was acquired or improved in whole or in part with Continuum of Care Homeless
Assistance funds in excess of$25,000.00 is either:
a) Used to meet one of the national objectives in 24 CFR 570.208 until five
years after expiration of the Agreement, or such longer period of time as
determined appropriate by the City; or,
b) Is disposed of in a manner which results in the City being reimbursed in
the amount of the current fair market value of the property less any portion
thereof attributable to expenditures of non-Continuum of Care Homeless
Assistance funds for acquisition of, or improvement to, the property. Such
reimbursement is not required after the period of time specified in
accordance with (i) above.
5.10 Indemnification. The Contractor, to the extent permitted by law and HUD
requirements, shall indemnify and hold the City harmless from and against: (1)
any and all claims arising from contracts between the Contractor and third parties
made to effectuate the purposes of this Agreement; and, (2) any and all claims,
liabilities or damages arising from the preparation or presentation of any of the
work covered by this Agreement.
5.11 Unenforceable Provisions. Any provision of this Agreement which is prohibited
or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to
the extent of such prohibition of enforceability without invalidating the remaining
provisions hereof or affecting the validity or enforceability of such provision in
any other jurisdiction.
5.12 Disclosure of Lobbying. The Contractor shall certify and disclose, to the best of
its knowledge and belief, that:
a) No Federal appropriated funds have been paid or will be paid, by or on
behalf of the Contractor, to any person for influencing or attempting to
influence an officer or employee of Congress, or an employee of a
Member of Congress in connection with the awarding of any Federal
contract, the making of any Federal grant, the making of any Federal loan,
the entering into of any cooperative agreement, and the extension,
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continuation, renewal, amendment or modification of any Federal
contract, grant, loan, or cooperative agreement.
b) If any funds other than Federal appropriated funds have been paid or will
be paid to any person for influencing or attempting to influence an officer
or employee of any agency, a Member of Congress, an officer or
employee of Congress, or an employee of a Member of Congress in
connection with this Federal contract, grant, loan, or cooperative
agreement, the Contractor shall complete and submit Standard Form-LLL,
"Disclosure Form to Report Lobbying", in accordance with its
instructions.
c) The language of this certification must be included in the award
documents for all sub-awards at all tiers, (including subcontracts, sub-
grants, and contracts under grants, loans, and cooperative agreements) and
that all subrecipients shall certify and disclose accordingly.
5.13 Subrecipients. The Contractor shall comply with the requirements and the
standards of 2 CFR, Part 225, "Cost Principles for the State, Local, and Indian
Tribal Governments" (Exhibit "H"), and with the requirements of 2 CFR, Part 215
(Exhibit "G").
5.14 Personnel and Participant Conditions.
5.14.1 Contract Compliance Clause.
5.14.1.1 Section 10-192 of the Omaha Municipal Code, Equal
Employment Opportunity Clause (Attachment 2). The
Contractor and its contractors shall not discriminate against
any employee or applicant for employment because of race,
religion, color, sex, age, sexual orientation, gender identity,
national origin, familial or handicap status. As used herein,
the word "treated" shall mean and include, without
limitation, the following: recruited, whether by advertising
or by other means; compensated; selected for training,
including apprenticeship; promoted; upgraded; demoted;
downgraded; transferred; laid off; and terminated. The
Contractor and its contractors agree to and shall post in
conspicuous places, available to employees and applicants
for employment, notices to be provided by the contracting
officers setting forth the provisions of this nondiscrimination
clause.
5.14.1.2 The Contractor and its contractors or subcontractors shall, in
all solicitations or advertisements for employees placed by or
on behalf of the contractor, state that all qualified applicants
will receive consideration for employment without regard to
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race, religion, color, sex, age, sexual orientation, gender
identity, national origin, familial or handicap status.
5.14.1.3 The Contractor and its contractors or subcontractors shall
send to each representative of workers with which he has a
collective bargaining agreement or other contract or
understanding a notice advising the labor union or workers'
representative of the contractor's commitments under the
equal employment opportunity clause of the city and shall
post copies of the notice in conspicuous places available to
employees and applicants for employment.
5.14.1.4 The Contractor and its contractors or subcontractors shall
furnish to the Human Rights and Relations 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 5.14.1.1 through 5.14.1.7 of this subsection and
only after reasonable notice is given the contractor. The
purpose of this provision is to provide for investigation to
ascertain compliance with the program provided herein.
5.14.1.5 The Contractor and its contractors or subcontractors shall
take such actions with respect to any subcontractor as the
City may direct as a means of enforcing the provisions of
paragraphs 5.14.1.1 through 5.14.1.7 herein, including
penalties and sanctions for noncompliance; however, in the
event the contractor becomes involved in or is threatened
with litigation as the result of such directions by the City, the
City will enter into such litigation as is necessary to protect
the interests of the City and to effectuate the provisions of
this division, and, in the case of contracts receiving federal
assistance, the contractor or the City may request the United
States to enter into such litigation to protect the interests of
the United States.
5.14.1.6 The Contractor and its contractors shall file and shall cause
his subcontractors, if any, to file compliance reports with the
Contractor's contractor in the same form and to the extent as
required by the federal government for federal contracts
under federal rules and regulations. Such compliance reports
shall be filed with the City's Human Rights and Relations
Director. Compliance reports filed at such times as directed
shall contain information as to the employment practices,
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policies, programs and statistics of the Contractor and its
subcontractors.
5.14.1.7 The Contractor and its contractors or subcontractors shall
include the provisions of paragraphs 5.14.1.1 through
5.14.1.7 of this section, "Equal Employment Opportunity
Clause," and Section 10-193 in every contract, subcontract or
purchase order so that such provisions will be binding upon
each subcontractor or vendor. (Code 1980, Section 10-192;
Ord. No. 35344, Sections 1, 9-26-00).
5.14.2 Workers' Compensation. The Contractor shall provide Workers'
Compensation Insurance coverage for all employees as required by the
State of Nebraska.
5.14.3 Section 3 — Employment of Low-Income Persons (Section 3 of HUD
Act of 68, as amended, 1 U.S.C. 1701u). The Contractor shall make its
best efforts to comply with Section 3. The purpose of Section 3 is to
ensure that employment and other economic opportunities generated by
HUD assistance or HUD-assisted projects covered by Section 3 shall, to
the greatest extent feasible, be directed to low and very low-income
persons, particularly persons who are recipients of HUD assistance for
housing (Attachment 4).
5.14.4 Conflict of Interest. The Contractor agrees to abide by the provisions of
24 C.F.R. 92.356 with respect to conflicts of interest, and covenants that
it presently has financial interest and shall not acquire any financial
interest, direct or indirect, which would conflict in any manner or degree
with the performance of services required under this Agreement. The
Contractor further covenants that in the performance of this Agreement
no person having such a financial interest shall be employed or retained
by the Contractor hereunder. These conflict of interest provisions apply
to any person who is an employee, agent, consultant, officer or elected
official or appointed official of the City or any designated public
agencies or subrecipients which are receiving funds under the
entitlement program.
5.14.5 Attestation of Citizenship. To comply with Neb. Rev. Stat. 4-108
through 4-114, the Contractor agrees to comply with the requirements
below.
The Contractor shall comply with and 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
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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."
The Developer/Owner/Subrecipient shall have each person/applicant
signing the application for a benefit under this agreement execute a
United States Citizenship Attestation Form for Public Benefit (Exhibit
"J") verifying eligibility status for the purposes of receiving a public
benefit.
5.14.6 Employee Classification Act. To comply with the Nebraska Employee
Classification Act, all general contractors and subcontractors who
perform construction or delivery services pursuant to this contract shall
submit to the City an Affidavit for Employee Classification Act(Exhibit
"K") 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.
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SECTION 6. CONTRACTOR'S COMPLIANCE WITH OTHER FEDERAL
REGULATIONS
6.1 Environmental Review. The Contractor agrees to comply with the following
regulations insofar as they apply to the performance of this Agreement:
6.1.1 Clean Air Act, 42, U.S.C., 1857, et seq.
6.1.2 Federal Water Pollution Control Act, as amended, 33 U.S.C. 1251, et
seq., as amended 1318 relating to inspection, monitoring entry, reports
and information as well as other requirements specified in Section 114
and Section 308, and all regulations and guidelines issued thereunder.
6.1.3 Environmental Protection Agency (EPA) regulations pursuant to 40
C.F.R. Part 50, as amended.
6.1.4 National Environmental Policy Act of 1969.
6.1.5 HUD Environmental Review Procedures (24 C.F.R. Part 58).
6.1.6 Flood Disaster Protection Act of 1973 (24 U.S.C. 4106 and P.L. 2234) in
regard to the sale, lease or other transfer of land acquired, cleared or
improved under the terms of the Agreement as it may apply to
provisions of this Agreement.
6.1.7 Lead-Based Paint Regulations at 24 C.F.R. 570.608 and 24 C.F.R. Part
35 and in particular Sub-Part B thereof. Such regulations pertain to all
HUD-assisted housing and require that all owners, prospective owners
and tenants of properties constructed prior to 1978 be properly notified
that such properties may include lead-based paint and require specific
treatments according to the amount of HUD funding allocated to the
Project.
6.1.8 Historic Preservation requirements set forth in the National Historic
Preservation Act of 1966, as amended (16 U.S.C. 470) and the
procedures set forth in 36 C.F.R., Part 800, Advisory Council on
Historic Preservation Procedures for Protection of Historic Properties,
insofar as they apply to the performance of this Agreement. In general,
this requires concurrence from the State Historic Preservation Office for
all rehabilitation and demolition of historic properties that are 45 years
old or older or that are included on a Federal, State or local historic
property list.
6.2 Uniform Relocation Act. The Developer shall comply with the applicable
regulations of the Uniform Relocation Act of 1970, as amended (URA) (42
U.S.C. 4601-4655), or Section 104 (d) of the Housing and Community
Development Act of 1974, as amended (Section 104 (d)), which require relocation
assistance be provided to residents, tenants, businesses and other occupants that
- 15 -
are displaced as a result of a federally-assisted project. In the event that the
Developer or its agent displaces any tenant-occupant of the property, it shall
immediately notify the City in writing of the circumstances surrounding said
displacement and comply with 24 C.F.R. 92.353.
6.3 Accessibility Requirements. The Contractor must comply with The Fair Housing
Act and with Section 504 of the Rehabilitation Act of 1973 in the provision of
reasonable accommodation to prospective clients and must adopt procedures to
make available information on the existence and locations of facilities and
services that are accessible to persons with a handicap and maintain evidence of
implementation of the procedures.
6.4 Non-Discrimination. The Contractor shall not, in the performance of this
Agreement, discriminate or permit discrimination in violation of federal or state
laws or local ordinances because of race, color, handicap, familial status, sex, age,
political or religious opinions, affiliations or national origin.
6.5 Federal Funding Accountability and Transparency Act. The Contractor shall
comply with the applicable regulations of the Federal Funding Accountability and
Transparency Act (FFATA) (75 Fed Reg 55663 (Sept 14, 2010) to be codified at
2 CFR, PART 170). Contractor shall complete and provide to the City (Exhibit
SECTION 7. DEFAULT PROVISIONS
7.1 Default. A default under this Continuum of Care Homeless Assistance Grant
Agreement shall consist of using grant funds for a purpose other than as
authorized by this Agreement, any noncompliance with legislative, regulatory, or
other requirements applicable to this Agreement, any other material breach of this
Agreement, or any material misrepresentation in the application submission.
7.1.1 Remedies. If, through any cause, the Contractor shall fail to fulfill
in a timely and proper manner any obligations under this
Agreement, or violate any of the covenants, representations or
agreements hereof, the City may upon written notice terminate this
Agreement or such parts thereof as to this Agreement, and may
hold the Contractor liable for any damages caused to the City by
reasons of such default and termination.
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SECTION 8. AUTHORIZED REPRESENTATIVES
In further consideration of the mutual covenants herein contained, the parties hereto
expressly agree that for the purposes of notice, including legal service of process, during the term
of this Agreement, and for the period of any applicable statute or limitations thereafter, the
following named individuals shall be authorized representatives of the parties:
(1) City of Omaha
Director, Planning Department
Omaha/Douglas Civic Center
1819 Farnam Street
Omaha, NE 68183
(2) Housing Authority of the City of Omaha [
Judith Carlin, I • �' • r r! is V-,2-e: r
1805 Harney Street
Omaha,NE 68102
IN WITNESS WHEREOF, the parties have executed this Agreement as of the dates
indicated below.
HOUSING AUTHORITY OF THE CITY
OF OM , a Body Politic and Corporate
Judith Carlini 49 tD,.e-c Date
I'3TCG1II1T1�.111G1 Lli��V lam~
ATTEST. CIT OF OMAHAOP.. �
to Dat i tilt# 5k) (01
Cit lerk of the ity of Omaha D Mayor of the City of Omaha
APPROVED AS TO FORM:
a-7 J , o16
CITY AT ORNEY DATE
2308 dlh
- 17 -
SCHEDULE OF EXHIBITS AND ATTACHMENTS
Agreement
Exhibit Location Description
A 1.2 Articles of Incorporation, Directors, Corporate
Resolutions
B 1.7, 3.1, 3.14, 3.17 HUD 24 CFR Part 578
C 1.15, 1.16, 2.1, 3.4, 5.7.1 Scope of Work
D 2.1.2, 5.7.1 Annual Operating Budget
E 2.1.7 Use of Debarred, Suspended or Ineligible
Contractors
F 3.8 2 CFR, Part 200.5
G 3.9, 3.10, 5.13 2 CFR, Part 215
H 3.10, 5.13 2 CFR, Part 225
I 5.8 Termination—24 CFR 85.43 and 24 CFR 85.44
J 5.14.5 Attestation of Citizenship
1{ 5.14.6 Affidavit for Employee Classification Act
L 6.5 Federal Funding Accountability and
Transparency Act
ATTACHMENTS
1 —"Rental Assistance for the Chronically Homeless" Application
2 —Equal Employment Opportunity Clause
3 —Minority Business/Women Business Enterprise Plan
4— Section 3 Clause
- 18 -
• i
•
•
II
AN ORDINANCE DECLARING THE NECESSITY OF CREATING A HOUSING '
AUTHORITY AND CREATING.SUCH HOUSING AUTHORITY OF THE .
CITY OF OMAHA UNDER AND BY VIRTUE OF THE PROVISIONS
OF SENATE FILE NO. . 256, AN ACT OF THE FIFTIETH SESSION
OF THE LEGISLATURE OF THE STATE OF NEBRASHA. •
•
' BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ONAHA=
• '
Section 1. .. That it is necessary and. expedient,- and it is
- hereby. declared necessary and bxpedient to create a Housing Authority
for the City of,Omaha, for the purpose of eliminating unsanitary
and congested housing. conditions existing within the City of Omaha,
and to aid in the housing of families of low incomes. . •
Section 2. ' That pursuant to the provisions of Senate File
N-o: ,- any Act of._the-Fiftieth Session ci the-Lagisra-ture of the '
State of Nebraska, there is'hereby created a Housing Authority for •
the City of Omaha to be. legally known and designated as the Housing
. Authority of the City of Omaha)to have and to possess all of the
powers, rights and privileges, and to assume all of the obligations
and..burdens provided in the said Senate File No. 256.
Section 3. That this Ordinance shall be in full forte
and effect from and after fifteen days after its passage.
. : •
Mayor at Presiders o the City Council
PASSED:
JUN 11193 .
ATTEST: �4.42i .4!"
ty e
Omaha Housing Authority - Board of Commissioners /146 Page 1 of 1
Board of Commissioners
To contact the OHA Board of Commissioners,please send written
correspondence to,
1805 Harney St.Omaha NE 68102.
We will forward the matter to the appropriate department for a response.
Thank you.
Commissioner Jennifer Taylor Commissioner Karen
Chair Watson
Vice Chair
Commissioner Jamie Berglund
Commissioner Nell Winford
1.++... 1 /')n/')n1 A
,,(T A
RESOLUTION NO.2015-61
CONTINUUM OF CARE RENTAL ASSISTANCE AGREEMENT
WHEREAS, the City of Omaha wishes to contract the services of the Housing
Authority of the City of Omaha (OHA) to administer the Continuum of Care Rental Assistance
Agreement(formerly known as the Shelter Plus Care Program); and,
WHEREAS, the program would provide rental assistance to approximately 22
chronically homeless individuals in Omaha; and,
WHEREAS,the City of Omaha is allocating$169,488.00 to OHA to cover funding
for the twelve-month period(August 1, 2015 to July 31,2016); and,
WHEREAS, OHA staff recommends that the Board of Commissioners of the
Housing Authority of the City of Omaha approve the contract between the City of Omaha and the
Housing Authority of the City of Omaha relating to funding and administration of the Continuum of
Care Rental Assistance Agreement, and further, that the Chief Executive Officer be authorized to
execute the same.
NOW,THEREFORE,BE IT RESOLVED THAT the Board of Commissioners of
the Housing Authority of the City of Omaha hereby approves the contract between the City of
Omaha and the Housing Authority of the City of Omaha relating to funding and administration of the
Continuum of Care Rental Assistance Agreement, and further, that the Chief Executive Officer be
authorized to execute the same.
This resolution shall take effect immediately.
Chair c er Taylor
OHA Board of Commissioners
ATTEST
I, Clifford Scott, Secretary of the Housing Authority of the City of Omaha, do hereby certify that
this resolution was properly adopted at the regular meeting of the Board Commissioners of the
Housing Authority of the City of Omaha held December 17 2015.
r
Cli ford Sc , Secretary
Housing Authority of the City of Omaha
12.17.15
Ext441.13-
•
•
. . 14VDREC04,p4
P. 4:4
c4
• -3 LH!
/98t
•
FEDERAL REGISTER
Vol. 77 Tuesday,
No. 147 July 31, 2012 •
•
Part II •
•
Department of Housing and Urban
Development
24 CFR Part 578
Homeless Emergency Assistance and Rapid Transition to Housing:
Continuum of Care Program; Interim Final Rule
•
•
•
•
•
,
Federal Register/Vol. 77, No. 147/Tuesday, July 31, 2012/Rules and Regulations 45423
F
disabled persons,permanent housing, by statute,HUD has developed a and suitable dwelling size,assessing
supportive services,and Homeless formula for determining award amounts supportive services on an ongoing basis,
Management Information Systems that includes the following factors:A initialing and completing approved
(HMIS).To implement the program, Continuum's Preliminary Pro Rata Need activities and projects within certain
HUD had to define several key terms.In (PPRN)amount;renewal demand;any timelines,and providing a formal
particular,HUD distinguishes between additional increases in amounts for process for termination of assistance to
"Continuum of Care,""applicant,"and leasing,rental assistance,and operating participants who violate program
li;ant"A costs based on Fair Market Rents, requirements or conditions of
"Continuum
ofe applicant"
Care"is a geographically P tanninE and Unified Funding Agency occupancy.
based group of representatives that cost funds,and amounts available for 7.Grant/Wraiths'imiion(Subpart G):
carries out the planning responsibilities bonus dollars.HUD has established To effectively administer the grants,
of the Continuum of Care program,as selection criteria for determining which HUD will provide technical assistance
set out in this regulation.These applications will receive funding under to those who apply for Continuum of.
representatives come from organizations the Continuum of Care program. Care funds,as well as those who are
that provide services to the homeless,or Recipients awarded Continuum of Care selected for Continuum of Care•funds.
represent the interests of the homeless funds must satisfy several conditions After having been selected for funding,
or ormerly homeless.A Continuum of prior to executing their grant grant recipients must satisfy certain
Care then designates certain agreements.All grants submitted for recordkeeping requirements so that
"applicants"as the entities responsible renewal must also.submit an annual HUD can assails compliance the
for carrying out the projects that the performance report For those program requirements.For
Continuum has identified through its . applicants not awarded funding,the amendments to grants after the funds
planning responsibilities.A process also provides an appeals have been awarded,HUD has
„Continuum of Care"also designates process. established a separate amendment
one particular applicant to be a 4.Program Components and Eligible procedure.As appropriate,HUD has
"collaborative applicant"The Costs(Subpart D):Continuum of Care also established sanctions to strengthen
collaborative applicant is the only entity funds may be used for projects under its enforcement procedures.
that can apply for a grant,from HUD on five program components:Permanent Benefits and Costs •
• behalf of the Continuum that the housing,transitional housing, This interim rule is to help
collaborative applicant represents. supportive services only,MILS,and,in re and to work intendeded. of
2. and Operating a some limited cases,lucmplessne,.ss resp n d to andho work toward
This the goalintaliof
• Continuum of Care(Subpart B):In order prevention.The rule further clarifies 8
to be eligible fax funds under the how the following activities are rule provides greater clarity and
Continuum of Care program, considered-eligible costs under the guidance about planning and
representatives from relevant Continuum ofCare program:Continuum Performance review to the-more than
ons within a geographic area of Care planning activities,Unified 430 existing Continuums of Care that
must establish a Continuum of Care. Funding Agency costs,acquisition; span all 50 states and 6 United States
The three major duties of a Continuum rehabilitation,new construction, teaitories.As reported in HUD's Annual
of Care are to:(1)Operate the leasing,rental assistance,supportive Homelessness Assessment Report to
Continuum of Care,(2)designate an services,operating costs,HMIS,project Congress,there were approximately 1.59
HMIS for the Continuum of Care,and administrative costs,relocation costs, million homeless•persons who entered
(3)plan for the Continuum of Care.HUD and indirect costs. emergency shelters or transitional
has delineated certain operational 5.IHgh-PerformingCommunities housing in FY 2010.HUD serves
requirements of each Continuum to help (Subpart E):HUD will annually,subject roughly half that many persons,nearly
measure a Continua's overall to the availability of appropriate data, 800,000 annually,through its three
performance at reducing homelessness, select those Continuums of Care that programs that will be consolidated into
in addition to tracking of pert once best meet application requirements to be the Continuum of Care program under
on a project-by-project basis.In . designated a high-perfuming' the McKinney Vento Act as amended by
addition,each Continuum is responsible community(HPC).An HPC may use the HSARTHAct(i.e.,Shelter Plus Care,
for establishing and operating a grant funds to provide housing Supportive Housing Program,Single
centralized or coordinated assessment relocation and stabilization services, Room Occupancy).The
changes '
system that will provide a and short-and/or medium-term rental initiated by this interim rule will
comprehensive assessment of the needs assistance to individuals and families at encourage Continuums of Care to
of individuals and families for housing risk of homelessaPca.This is the only establish formal policies and review
and services.HUD has also defined the time that Continuum of Care funds may procedures,including evaluation of the
minimum planning requirements for a be used to serve individuals and effectiveness of their projects,by
Continuum so that it coordinates and families atrisk of homeleL 1psc. emphasizing performance measurement
implements a system that meets the 6.Program liequirernauts(Subpart F): and developing performance targets for
needs of the homeless population All recipients of Continuum of Care homeless populations.HUD is confident
within its geovaphic area.Continuums funding must comply with the program that this systematic review by
are also responsille for preparing and regulations and the requirements of the Continuous of Care will lead to better
overseeing an application for funds. Notice of Funding Availability that HUD use of limited resources and more
-Continuums will have to establish the will issue each year.Notably,the efficient service models,with the end
funding priorities for its geographic area HEARTH Act Tequires that all eligible result of preventing and ending
when submitting an application. funding costs,except leasing,must be homelessness.
3.Application and Grant Award matched with no less than 25 percent The Consolidated and Further
Process(Subpart C):The Continuum of cash or in-kind match by the Continuing Appropriations Act,2012
Care grant award process begins with a Continuum.Other program (Pub.L.112 55)appropriated
determination of a Continuum's requirements of recipients include: $1,593,000,000 for the Continuum of
maximum award amount As directed Abiding by housing quality standards Care and Rural Housing Stability
Federal Register/Vol. 77, No. 147/Tuesday, July 31, 2012/Rules.and Regulations 45425
O
families experiencing homelessness. Continuum.HUD.highlights that the Act organized to carry out the
The program is composed of transitional does not contain different definitions for responsibilities required under this part
housing,permanent supportive housing "applicant"and"collaborative . and that is composed of representatives
for disabled persons,permanent applicant"HUD distinguishes between of organizations including nonprofit
housing,supportive services,and H VIIS. the applicants)designated to apply for homeless providers,victim service
Definitions.The interim rule adopts and carry out projects(the"applicant") providers,faith-based organizations,
the definitions of"developmental and the collaborative applicant • governments;businesses,advocates,
disability,""homeless,""homeless designated to apply for a grant on behalf public housing agencies,school
individual,"and"homeless person" of the Continuum of Care(the districts,social service providers,
established by the December 5,2011 "collaborative applicant")..Please see mental health agencies,hospitals,
Defining Homeless final rule.Public below for more information on the universities,affordable housing
comments have already been solicited definition of a collaborative applicant, . developers,law enforcement
and additional public comment is not which is the only entity that may apply organizations that serve homeless and
solicited through this rule.The for and receive Continuum of Care formerly homeless veterans,and
December 5,2011,final rule was ping funds. homeless and formerly homeless
preceded by an April 20,2010, Centralised or coordinated persons.These organizations consist of
proposed rule,which soughtpublic assessment system is defined to mean a the relevant parties in the geographic
comment on these definitions.The final centralized or coordinated process area,•continuums are expectedto •
definittnma of these•terms took into designed to coordinate program include representation to the extent that
consideration the public comments. participant intake,assessment,and the type of organization exists within
received on the proposed definitions as provision of referrals.A centralized or the geographic area that the Continuum
set out in the April 20,2010,proposed coordinated assessment system covers• represents and is available to participate
rule.This interim rule adopts the the geographic area,is easily accessed in the Continuum.For example,if a
definition of"at risk of homelessness" by individuals and families seeking Continuum of Care did not have a
established by the December 5,2011, housing or services,is well advertised, universitywithin its geographic
the Emergency Solutions Grants and includes a.c comprehensive and boundaries,.then HUD would not expect
program interim rule.The interim rule standardized assessment tool.This the Continuum to have representation
sought public comment on this definition establishes basic minimum from a university within the
definition,and additional public requirements for the Continuum's Continuum.
comment is not being sought through centralized or coordinated assessment These organisations cagy out the
this rule. system.
HUD received valuable public Collaborative applicant is defined to responsibiIties and duties established
comment on the definition-of mean an eligible applicaatthat has been under Subpart B of this interim role.
"chronically homeless,"through the designated bythe Continuum of Care to TheContinuum of Care,as noted above,
public comment process on the apply for a grant for Continuum of Care carries out the statutory duties and
Emergency Solutions Grants program *main funds on behalf of the responsibilities of a collaborative
interim rule.Based on public comment Continuum.As discussed above,the applicant.HUD established the
this rule for theContinuum of Care "applicant"is the eritity(ies)designated Continuum of Care in 1995.Local
program is not adopting the full to apply for and carry out projection and stakeholders are fam;liar
definition of"chronically homeless" -behalf of the Continuum.In contrast to with the Continuum of Care as the
that was included in the conforming the.definition of"applicant"above,the coordinating body for homeless services
• amendments to the Consolidated Plan collaborative applicant applies for a ' and homelessness-prevention activities
that were published•as apart of the grant to carry out the planning activities across the geographic area.
Emergency Solutions Grants program on behalf of the Continuum of Care.The Consequently,HUD is maintaining the
rule.Commenters raised concerns with interim rule Simplifies the sialulw.y Continuum of Care terminology,and the
the meaning.of the phrase"where each language in order to make the rule provides for the duties and
homeless occasion was at least 15 Continuum of Care planning process responsibilities of.a collaborative
days."The concerns raised about this clear. applicant to be carried out under the .
phrase,used for the first time in a HUD highlights that its definition of name Continuum of Care.
definition of"chronically homeless," collaborative applicant does not track High perforating commzmityis
has caused HUD to reconsider the statutory definition,which is found defined to mean the geographic area
proceeding to apply a definition that in section 401 of the McKinney-Vento under the jurisdiction of a Continuum of
includes this phrase,without further Act.As will be discussed in further Care that has been designated as a high-
consideration and opportimity for detail later in this preamble,the concept performing community by HUD.Section
comment.In this rule,HUD therefore of collaborative applicant,its duties and 424 of the.McKinney Vento Act
amends the definition of"chronically functions,as provided in the statute,is provides that HUD shall designate,on
homeless"in the Consolidated Plan provided for in this rule.However,HUD an annual basis,which collaborative
regulations to strike this phrase.The uses the term Continuum of Care to refer applicants represent high-performing
removal of this phrase returns the to the orgeni atinna that cagy out the communities.Consistent with HUD's
monition to one.with which'service duties and responsibilities assigned to substitution of the term"Continuum of
providers are familiar'The following the collaborative applicant,with•the Care"for"collaborative applicant,"the
• highlights key definitions used in the exception of applying to HUD for grant definition of gh performing
Continuum of Care program regulations, funds.The clarification is necessary in community!'in this interim rule
and HUD solicits comment on these this rule because-Continuums ms of Care provides for designation of Continuums
definitions. are not required to be legal entities,but of Care that represent geographic areas
Applicant is defined to mean an HUD can enter into contractual designated as high-performing
entity that has been designated by the agreements with legal entities only. communities.The standards fur
Continuum of Care as ellgihl&to apply Continuum of Care and Continuum becoming a high performing community
for assistance on behalf of that are defined•to mean the group that is can be found in§578.65 of this interim
Federal Register/Vol. 77, No. 147/Tuesday, July 31, 2012/Rules and Regulations 45427
HUD focuses on the rules and Continuum.HUD requires two inclusive and fair.HUD has established
responsibilities of those involved in the characteristics for all board eight duties required of the Continuum
Continuum of Care planning process compositions.These characteristics are necessary to effectively operate the
and describes how applications and that the Board must be representative of Continuum of Care.HUD has
grant funds will be processed. the subpopulations of hnmatace persons established the specific minimum
As discussed earlier in the preamble, that exist within the geographic area, standards for operating and managing a
HUD's interim rule provides for the and include a homeless or formerly Continuum of Care for two main
duties and functions of the collaborative homeless person.Continuums will have reasons.First,the selection criteria
applicantiound in section 401 of the 2 years from the effective date of the established under section 429 of the
McKinney Vento Act to be designated to interim rule to establish a board that McKinney-Vemo Act require HUD to
the Continuum of Care,with the meets the criteria established in this measure the Continuum of Care's
exception of applying to HUD for grant section.No board member may performance in reducing homelessness
funds.HUD chose this approach participate or influence discussions or by looking at the overall performance of
because the Continuum might not be a decisions concerning the award of a the Continuum,as opposed to
legal entity,and therefore cannot enter grant or other f1m nr-ial benefits for an measuring performance project-by-
into enforceable contractual agreements, organization that the member project as was done prior to the
but is the appropriate body for m pprreess ts. enactment of the HEARTH Act.This
establishing and implementing HUD its considering four additional Continuum of Care performance
decisions that affect the entire characteristics for all board approach results in cooperation and
geographic area covered by the compositions for incorporation in the coordination among providers.Second,
Continuum,including decisions related final rule.HUD did not implement them because Continuums of Care will have
to funding.This approach allows the at this stage in order to seek public grants of up to 3 percent of Final Pro
Continuum to retain its duties related to comment prior to implementing them as Rata Need(FPRN)to be used for eligible
planning and prioritizing need requirements.HUD proposes that all Continuum of Care planning casts,HUD
(otherwise designated by statute to the • boards must have a chair or co-chairs; is requiring more formal decision
collaborative applicant),while the be composed of an uneven number, making and operating standards for the
authority to sign a grant agreement with serving staggered terms;inpiude Continuum of Care.This requirement
HUD is designated to an eligible members from the public and private ensures that the Cvntiuuums have
applicant that can enter into a sectors;and include a member from at appropriate funding to support planning
contractual agreement.All of the duties least one Emergency Solutions Grants costs.
assigned to the Continuum are based on program(ESG)recipients agency One of the duties established in this
the comparable duties of section 402(f) located within the Continuum's interim rule is the requirement that the
of the McKinney-Vento Act geographic area.HUD is requesting Continuum establish and operate a
Subpart B of the interim rule comment on all of these proposed centralized or coordinated assessment
identifies how-Continuums of Care are requirements;however,HUD system that provides an initial,
established,as well as the required • specifically requests comments from comprehensive assessment of the needs
duties and functions of the Continuum Continuums of Care and ESG recipients of individuals and families for housing
of Care. - on the requirement that the Board and services.As detailed in the
Establishing the Continuum of Care. include an ESG recipient as part of its Emergency Solutions Grants program
In order to be eligible for funds under membership.HUD invites EEG - interim rule published on December 5,
the Continuum of Care.program, recipients and Continuums to share 2011,through the administration of the
representatives from relevant challenges that will be encountered Rapid Re-Housing'for Families
organizations within a graphic area when implementing this requirement. Demonstration program and the
must establish a Continuum of Care.As Ensuring that EEG recipients are Homelessness Prevention and Rapid Re-
. discussed earlier in this preamble,this represented on the Board is important to Housing program,as well as best
body is responsible for canying out the HUD;therefore,in communities where practices identified in communities,
duties identified in this interim ESG recipients and/or Continuums do •HUD has learned that centralized or
regulation.Representatives from not feel this requirement is feasible, coordinatedassessment systems are
relevant organizations include nonprofit HUD asks commenters to provide important in ensuring the success of
homeless assistance providers,victim suggestions for how PSG recipients can homeless assistance and homeless
service providers,faith-based - be involved in the Continuum at one of prevention programs in communities.In
organizations,governments,businesses, the core decision-malting levels. particular,such assessment systems
advocates,public housing agencies, Responsibilities of the Continuum of help communities systematically assess
school districts,social service providers, Care.The interim rule establishes three the needs of program participants and
mental health agencies,hospitals, major duties for which the Continuum effectively match each individual or
universities,affordable housing of Care is responsible:To operate the family with the most appropriate
developers,law enforcement and Continuum Of Care,to designate.
an resources available to address that
organizations that serve veterans and HMIS for the Continuum of Care,and to individual or family's particular needs.
homeless and formerly homeless plan for the Continuum of Care. Therefore,HUD has required,through
individuals.Where these organizations This section of the interim rule this interim rule,eachContinuum of
are located within the geographic area establishes requirements within these . Care to develop and implement a
served by the Continuum of Care,HUD three major duties. • . centralized or coordinated assessment
expects a representative of the . Opemth g the Continuum of Care.The system for its geographic area.Such a
organization to be a part of the interim rule provides that the system must be designed locally in
Continuum of Care. Continuum of Care must abide by response to local needs and conditions.
• Specific request for comment.HUD certain operational requirements.These For example,rural areas will have
specifically requests comments on requirements will ensure the effective significantly different systems than
requiring Continuums of Care to have a management of the Continuum of Care. • urban ones.While the common thread
board that makes the decisions for the process and ensure that the process is between typical models is the use of a
Federal Register/Vol. 77, No. 147/Tuesday, July 31, 2012/Rules and Regulations 45429
coordinated and clear .lining process, designated for funding..The applicant.For-profit entities are not
which involves the creation of the collaborative applicant wilalways be eligible to apply for grants or to be
Continuum of Care and the duties the the only applicant that can apply for subrecipients of grant fonds.
Continuum of Care will have to fulfill. Continuum of Care planning costs.In Section 401(10)of the McKinney-
Other planning duties for Continuums the case that there is one application for Vemo Act identifies that collaborative
established in this section of the interim projects,the recipient of the funds is ,applicants maybe legal entities,and a
rule are planning for and conducting at required to have signed agreements with' legal entity may include a consortium of
least a biennial-point-in-time count of its subrecipients as set forth in instrumentalities of a State or local
homeless persons within the geographic §578.23(c),and is required to monitor government that has constituted itself as
area,conducting an annual gaps and sanction subrecipients in an entity.HUD has not included a
analysis of the homeless needs and compliance with§578.107. consortium in the list of eligible .
services available within the geographic Whether the Continuum of Care applicants.Asnoted earlier in this
area,providing information necessary to submits the application or designates an preamble,a Continuum of Care is
complete the Consolidated Plants) eligible applicant to submit the defined to mean a group that is
within the geographic area,and application for funding,the Continuum composed of representatives.of
consulting with State and local of Care retains all of its duties. rn'ggrnimatinnR across the entire
government Emergency Solutions Unified Funding Agencies.To be geographic area claimed by the.
Grants program recipients within the designated as the Unified Funding Continuum of Care.A Continuum is
Continuum of Care on the plan for Agency(UFA)for the Continuum of able to combine more than one
allocating Emergency Solutions Grants Care,the Continuum must select the metropolitan city or county into the •
program funds and reporting on and collaborative applicant to apply to HUD geographic area that the Continuum
evaluating the performance of to be designated as the UFA for the represents.In essence,the Continuum.of
Emergency Solutions Grants program Continuum.The interim rule establishes Care acts as a consortium,and it is
recipients and subrecipients. the criteria HUD will use when . therefore HUD's position that the
Preparing an application for funds.A determining whether to designate the inclusion of consortiums in the interim
major function of the Continuum of Care collaborative applicant as a UFA.These rule would be redundant:. •
is preparing and overseeing an standards were developed to ensure that Determining the Continuum's
application for funds under this part collaborative applicants have the maximum award amount.The total
This section of the interim.rale capacity to manage the grant and carry amount for which a Continuum of Care
establishes the duties of the Continuum outthe duties in 578.11(b),and are is eligible to apply and be awarded is
of Care related to the preparation of the described below. determined through a four-step process,
application.This section of the interim The duties of the UFA established in including the following factors:A
rode establishes that the Continuum is §578.11 are consistent with the duties Cantinuum's PPRN amount renewal
responsible for designing,operating, set forth in.section 402(g)of the Act demand;any additional increases in
and following a collaborative process for Even lithe Continuum designates a amounts for leasing,rental assistance,
the development of applications,as well UFA to submit the application for and operating costs based on,Fair
as approving the submission of funding,the Continuum of Care retains Market Rents(1?MMRs);planning and
applications,in response to a NOFA all of its duties. UFA cost funds;and the amounts
published by HUD. Remedial actions.Section 402(c)of available for bonus dollars.
:_ .The Continuum must also establish the McKinney-Vento Act gives HUD the Using the formula that wiIl;be ..
priorities for funding projects within the authority to ensure the fair distribution discussed below,HUD will first
geographic area and determine the '.' of grant amounts for this program,'such determine a Continuum of Care's PPRN
number of applications being submitted as designating another body as a amount,as authorized under section
for funding.As previously noted in this collaborative'applicant replacing the 427(b)(2)(B)of the McKinney Vento Act.
preamble,since the Continuum of Care Continuum of Care for the geographic This amount is the sum of the'PPRN
might not be a legal entity,and therefore area,or permitting other eligible entities amounts for each metropolitan city,
may not be able to enter into a to apply directly for grants.Section urban county,non-urban county,and
contractual agreement with HUD,the 578.13 of this interimrule'addiesses the insular area claimed by the Continuum
Continuum must select one or more remedial actions that may be taken. of Care as part of its geographic area,
eligible applicants to.submit an excluding any counties applying for,or
Overview of the Application and Grant receivingfunds under the Rural
application for funding to HUD on its
Award Process(Subpart C HousingAssistance program,
behalf.If the Continuum of Care is an Stability p gram,
Olgihty applicant,the Continuum of RligfhIe applicants.Under this interim the regulations for which will be
Care may submit an application.If the rule,eligible applicants consist of establishedin 24 CFR part 579.The
Continuum selects more than one nonprofit frgaaiaations,State and local PPRN for each of these areas is based
application,the Continuum must-select governments,and instrumentalities of upon the"need formula"under
one eligible applicant to be the. , local governments.An eligible applicant §579.17(a)(2)and(3).Under the
collaborative applicant That applicant must have been designated by the McKinney-Vento Act,HUD is required
will collect and combine the required Continuum of Care to submit an to publish,by regulation,the formula
application infnrmatinit from all Of the application for grant funds under this • used to establish grant amounts:The
other eligible applicants and for all . part.The Continuum's designation must need formula under§579.17(4(2)and
projects within the geographic area that state whether the Continuum is (3)satisfies this requirement,and HUD
the Continuum has designated.If only designating mare than one applicant to specifically seeks comment on this
one application is submitted by the. apply for funds;and if it is,which formula.HUD will announce the PPRN
collaborative applicant,the applicant is being designated the ' amounts prior to the publication of the
collaborative applicant will collect and collaborative applicant A Continuum of NOFA on its Web site. .
combine the required application Care that is designating only one To establish the amount on which the
information from all projects within the applicant for funds must designate that need formula is run,HOD will deduct
geographic area that the Continuum has applicant to be the collaborative an amount,which will be published in
Federal Register/Vol. 77, No. 147/Tuesday, July 31, 2012/Rules and Regulations 45431
will enter into a grant agreement with would not be eligible under the Continuum of Care in the interim rule
each designated recipient for which an Continuum of Care program For where the statute uses collaborative
award is announced.If a Continuum projects that would no longer be eligible. applicant,as explained earlier in the
designates only one recipient for the under the Continuum of Care program amble,the interim than one Continuum s ug p f Care
geographic area,HUD may enter into (e.g.,safe havens),but which are serving more
one grant agreement with that recipient homeless persons;HUD wants to ensure claims the same geographic area,then
for new awards,if any;and one grant that housing is maintained and that HUD will.award.funds to the
agreement for renewals and Continuum persons do not become homeless Continuum applicant(s)whose
of Care pleoning costs and UFA costs, because funding is withdrawn. application(s)has the highest total score
if any.These-two grant agreements will HUD may renew projects that were and that no projects from the lower
cover the entire geographic area,and a submitted on time and in such manner scoring Continuum of Care will be
default by the recipient under one of as required by HUD,but did not have funded.(and that any projects submitted
these agreements will also constitute a a total score that would allow the with Both applications will not be
default under the other.Ti the project to be competitively funded.HUD funded).To appeal HUD's decision to
Continuum is a UFA,HUD will enter may choose to exercise this option to fund the competing Continuum of Care,
into one grant agreement with the UFA ensure that homeless or formerly. the applicant(s)from the lower-scoring
for new awards,if any;and one for homeless persons do not lose their Continuum of Care must file the written
renewal and Continuum of Care housing.The interim rule provides, appeal iu such form and manner as
planning costs and UFA costs,if any. based on the language in section 421(e) HUD.may require within 45 days of the
Similarly,these two grant agreements of the McKinney Vento Act,that HUD date of HUD's announcement of award.
will cover the entire geographic area may renew the project,upon a finding If an applicant has had a certification
and a default by the recipient under one that the project meets the purposes of of consistency with a consolidated plan
of those agreements will also constitute the Continuum of Care program,for up withheld,that applicant may appeal
a default under the other. to one year and under such conditions such a decision to HUD.HUD has
HUD requires the recipient to enter as HUD deems appropriate. established a procedure to process the
into the agreement described in Annual Performance Report.The .appeals and no later than 45 days after
§578.23(c).Under this agreement,the interim rule also provides that HUD the date of receipt of an appeal,HUD
grant recipient must agree to ensure that " . gate the renewal of any grant will make a decision.
the operation of the project will be in - , . require the recipient to repay the Section 422(h)of the McKinney Vento
accordance with the McKinney-Veto Act renewal grant if the recipient fails to Act provides the authority for a solo
and the requirements under this part In submit a HUD Annual Performance applicant to submit an application to
addition,the recipient must monitor Report(APR)within 90 days of the end HUD and be awarded a grant by-HUD
and report the progress-of the projects of the program year or if the recipient if it meets the criteria under section 427
to the Continuum of Care and to HUD. submits an APR that HUD deems of the McKinney Vento Act.The interim
The recipient must ensure that unacceptable or shows noncompliance rule clarifies that a solo applicant must
individuals and families experiencing with the requirements of the grant and submit' its application to HUD by the
homelessness are involved in the this part.Section 578.103(e)of the ri Miine established in the NOFA to be
operation of the project,maintain Continuum of Care program regulations considered for funding.The statute also
confidentiality of program participants, further clarifies that recipients receiving requires that HUD establish an appeal
and monitor and report mairhing funds grant funds for acquisition, . . . process for organizations that attempted
to HUD,among other requirements.The rehabilitation,or new construction are to participate in the Continuum of
recipient must also agree to use the expected to submit APRs for 15 years Care's process and believe-they were
centralized or coordinated assessment from the date of initial occupancy or the denied the right to reasonable
system established by the.Continuum of date of initial service provision,unless participation,as reviewed in the context
Care,unless the recipient or HUD provides an exception.The of the local Continuum's process.An
subrecipient is a victim service recipient's submission of the APR helps organization may submit a solo
provider.Victim service providers may HUD review whether the recipient is application to HUD and appeal-the
choose not to use the centralized or carrying out the project in the manner Continuum's decision not to include it
coordinated assessment system proposed in the application.Recipients in the Continuum's application.If HUD
provided that all victim service agree to submit an APR as a condition finds that the solo applicant was not
providers in the area use a centralized of their grant agreement.This permitted to participate in the
or coordinated assessment system that requirement allows HUD to ensure that Continuum of Care process in a
meets HUD's minimum requirements. recipients submit APRs on grant reasonable manner,then HUD may
HUD has provided this optional agreements that have expired as a - award the grant to that solo applicant
exception because it understands the condition of receiving approval for a - and may direct the Continuum to take
unique role that victim service new grant agreement for the renewal remedial steps to ensure reasonable
providers have within the Continuum of project participation in the future.HUD may
Care. - Appeals.The interim rule provides also reduce the award to the
Renewals.The interim rule provides certain appeal options for applicants Continuum's applicant(s).
thatHUD may fund,through the that were not awarded funding. Section 422(h)(1)of the McKinney-
Continuum of Care program,all projects Under section.422(g)of the • Vento Act requires that `HUD establish
that were previously etigihiP under the McKinney-Vento Act,if more than one a timely appeal procedure for grant
McKinney Vento Act prior to the collaborative applicant submits an amounts awarded or denied under this
enactment of the HEARTH Act.These application covering the same subtitle to a collaborative application."
projects maybe renewed to continue geographic area,HUD must award funds The interim rule sets an appeal process
ongoing leasing,operations,supportive to the application that scores the highest for denied or decreased-funding under
services,rental assistance,HMIS;and score based on the selection criteria set §578.35(c).Applicants that are denied
administration beyond the initial forth in section 427 of the Act funds by HUD,or that requested more
fending period even if those projects Consistent with HUD's use of the term funds than HUD awarded,may appeal
•
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Federal Register/Vol. 77, No. 147/Tuesday, July 31, 2012/Rules and Regulations 45433
available to UFAs related to establishing section provides that rental assistance family member of the perpetrator of the
fiscal controls will be added to a CoC's may include tenant-based,project- violence.HUD requires that the program
FPRN to establish the CoC maximum based,or sponsor-based rental participant provide appropriate
award amount assistance.This section also provides documentation of the original incident
Leasing.Under this interim rule,grant that project-based rental assistance may of domestic violence,dating violence,
fundimay be used to pay the costs of include rental assistance to preserve sexual assault,or stalking,and any
leasing a structure or structures,or existing permanent supportive housing evidence of the current imminent threat
portions of Structures,to provide for homeless individuals and families. of harm:Examples of appropriate
housing or supportive services.The Given that the availability of affordable documentation of the original incident
interim rule further clarifies that leasing rental housing has been shown to be a of domestic violence,dating violence,
means that the lease is between the key factor in reducing homelessness,the sexual assault,or stalking include
recipient of funds and the landlord. availability of funding for short term, written observation by the housing or
HUD recognizes that some grantees medium term,and long-term rental service provider;a letter or other
receiving funds through the Supportive assistance under both the Emergency documentation from a victim service
Housing Program may have been using Solutions Grants program and the provider,social worker,legal assistance
their leasing funds in a manner Continuum of Care program is not provider,pastoral counselor,mental
consistent with the rental assistance inefficient use of program fads,but health provider,or other professional
requirements established in§578.51; rather effective use of funding for an from whom the victim has sought
therefore,since the Continuum of Care activity that lowers the number of assistance;or medical or dental,court, -
program authorizes both leasing and homeless.persons. or law enforcement records.
rental assistance,the rule provides for As noted in the above discussion of Documentation of reasonable belief of
an allowance for projects originally rental housing available for funding further domestic violence,dating
approved to carry out leasing to renew under the Continuum of Care program, violence,sexual assault,or stalking
and request funds for rental assistance, one eligible form of rental assistance is includes written observation by the
so long as the rental assistance meets tenant based,which allows the program housing or service provider;a letter or
the requirements in§578.51.The rule participant to retain rental assistance for other written documentation from a
re provides that a cipient•of a grant another unit.The interim role limits victim service provider,soul worker,
awarded under the McKinney-Vento this retention to within the Continuum I ,,1 assistance provider,pastoral
Act,prior to enachnent of the HEARTH of Care boundaries.HUD has counselor,mental health provider,or
Act,must apply for leasing if the lease determined that Continuum of Care other professirmsl from whom the
is between the recipient and the program funds must be used within the victim has requested assistance;a
landlord,notwithstanding that the.grant Continuum's geographic boundaries.If current restraining order,recent court
was awarded prior to the HEARTH Act program participants move outside of order,or other court records;or law
amendments to the McKinney-Vento the Continuum,the Continuum may pay enforcement reports or records.The
Act. moving costs,security deposits,and the housing or service provider may also
The interim rule provides that leasing first month of rent for another unit; consider other documentation such as
funds may not be used to lease units or however,the Continuum would have to email%voicemails,text messages,social
structures owned by the recipient, organize assistance with the relevant media posts,and other commnnirtion.
sobrecipient,their parent Continuum of Care for the program Because of the particular safety
organization(s),any other related participant if rental assistance is to concerns surrounding victims of
organization(s),or organizations that are continue.The program participant may domestic violence,the interim rule
members of a partnership Where the be transferred to a rental assistance provides that acceptable evidence for.
partnership owns the structure,unless program in a different Continuum both the original violence and the
HUD authorizes an exception for good without having to become homeless reasonable belief include an oral
cause.The interim role establishes again.The recipient may also limit the statement This Oral statement does not
minimum requirements that a request movement ofthe assistance to a smaller
for an exception must include.These area if this is necessary to coordinate need to be verified,but it must be
exceptions are based on HUD's ' service delivery. documented by a written certification
experience in administering the Under this interim rule,the only by the individual or head of household.
Homelessness Prevention and Rapid Re- exception to the limitation for retention This provision is specific to victims of
Housing Program(HPRP). of tenant-rased rental assistance is for domestic violence,dating violence,
The interim rule establishes that program participants who are victims of sexual assault,and stalking who are
projects for leasing may require that domestic violence,dating violence, -receiving tenant-based rental assistance
program participants pay an occupancy sexual assault or stalking.Under the in permanent housing.This interim rule
charge(or in the Case of a sublease,rent) definition of"tenant-based"in the ' contains other policies for moving
of no more than 30 percent of their McKinney-Vento Act(section 401(28)of program participants receiving any type
income.Income must be calculated in the McKinney'-Vento Act),these of assistance under this interim rule,
accordance with Hi)D's regulations in participants must have complied with ,including tenant-based rental assistance,
24 CFR 5.609 and 24 CFR 5.611(a). all other obligations of the program and within the Continuum of Care
However,the interim rule clarifies that reasonably believe that he or she is geographic area,or smaller geographic
projects may not charge program fees. imminently threatened by harm from area required by the provider to
Rental assistance.Under this interim -further violence if he or she remains in coordinate service delivery.Moving
rule,rental assistance is an eligible cast the assisted cl*elling unit program-participants outside of the
for permanent and transitional housing, In the interim rale,HUD has.clarified geographic area where providers can
and this rule clarifies that the rental .that the imminent threat of harm must coordinate service-delivery is
assistance may be short=term„up to 3 be from further domestic violence, administratively difficult for providers
months of rent;medium-term,for 3 to dating violence,sexual assault,or - and makes it difficult to monitor that
24 months of rent;and long-term,for' stalking which would include threats program participants have access to,and
longer than 24 months of rent This from a third party,such as a friend or are receiving appropriate supportive
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Federal Register/Val. 77, No. 147/Tuesday, July 31, 2012/Rules and Regulations 45435
have the right to decline having their grants awarded in the same competition in HPCs may use match on el gih1P
data entered into the HMIS.HUD uses in which the designation is applied for activities described under§578.71.
bed-coverage rates and service-volume and made.The designation will be for General operations.Recipients of
coverage rates as a proxy for measuring a period of one year. grant funds must provide housing or
the rate of inclusion of persons who are Meal activities.Recipients and . services that comply with all applicable
present for services or housing in the subrecipients in Continuums that have State and local housing codes,licensing
HMIS.This is a measurable standard, been designated an HPC may use grant Tequirements,and any other
and HUD defines the calculation in the funds to provide honing relocation and requirements in the project's
HMIS rule;therefore,the measurement soimit7 tinn services and short-and/or jurisdiction.In addition,this interim
will be consistent between Continuums. medium-term rental assistance to rule clarifies that recipients must abide
Continuums must use reliable data individuals and families at risk of by homing quality standards and
from other sources and presented in a homelessness is set for in the suitable dwelling size.Recipients must
narrative form or other format Emergency Solutions Grants program. also assess supportive services on an
prescribed by HUD to measure two All u3l tilde activities discussed in this ongoing basis,have residential
section must be effective at stabilizing ervision,and Provide for
standards:Communityaction and �P
renewing HPC status.Section 424(d)(4) individuals and families in their current Pupation of homeless individuals as
of the McKinney-Vento Act establishes housing,or quioldy moving sort required under section 426(g)of the
another standard for HPCs,which is individuals and families to other M�a7 Vento Act.
,� . • Specific request for comment With
community action."This statutory permanent housing.This is the only
section provides that communities that time that Continuum of Care funds may. HUD in ct Loud thisquality nl standards,
compose the geographic area must have be used to serve nonhomeless
the
actively encouraged homeless individuals and families.Recipients and leg requirement from the
individuals and families to participate subrecipients using grant funds on these Shelter Plus Care program that
in housing and services available in the PIitjh1e activities must follow the recipientssubrecipients,behalf of ao
geographic area and included each written standards established by the provi astid t,on be physically
homeless individual or family who cadmium of Care in§578.7(a)(9)(v), program p P� p y� y
sought homeless assistance services in and the recordkeeping requirements set inspect each unit to standards.This sure that tbe unit
the data system used by that community the Emergency Solutions Grants meets hol d to ensure that
for d compliance.HUD has requirementdesigns
defined"communitiesesthat compose the �ogcam rule. program participants are placed in
geographic area"to mean the entire Program Requirements(Subpart F) housing that is suitable for living.
geographic area of the Continuum.This All recipients of Continuum of Care Additionally'with HUD's
re requirements are
definition will also provide of measurement since most of HUD's fundingphysical
must compcyly with the program inspection requirements in its other
measurements are across the entire regulations and the annuallyrequ bycemeats of the mainstream rental assistance programs.
Continuum of Care geographic area. NOFA issued HUD, Notwithstanding that this is a
HUD has further defined"actively M�The HEARTH Act allows longstanding requirement,HUD.
encourage.within this standard as a for a new,simplified match welcomes comment on alternatives to
requirement All eligible funding costs inspection of each unit that may be less
comprehensive outreach plan,including
specific steps for identifying homeless except leasing must be matched with no burdensome but ensure that the housing
less than a 25 percent cash or in-kind to aparticipantis
persons and referring them to providedprogram
appropriate housing and services in that match.The interim rule clarifies that the decent,safe,and sanitary.
geographic area.The measurement of match must be provided for the entire Under Section 578.75,General
the last part of this standard,"each !it,except that recipients that are Operations,subsection(h),entitled
homeless individual or bulgy who UFAs or are the sole recipient for the "Supportige Service Agreements,
sought homeless assistance services in Continuum may provide the match on a antes that recipients and subrecipients
the data system used by that. Continuum-wide basis. may require o ,y :m participants to
community,"will lbe.measnred.using For in-kind match,the take part in supportive services so long
reliable data from an HMIS and has governmentwide grant requirements of as they are not disability-related
been discussed earlier in this preamhle. HUD's regulations in 24 CFR 84.23(for services,provided through the project as
HUD has determined this will provide Private nonprofit organizations)and a condition of continued participation
clarity and ensure consistent . 85.24(for governments)apply.The in the program.Examples of disability-
measurement across Continuums. regulations in 24 CFR parts 84 and 85 related services include,but are not
The interim rile provides that a establish uniform administrative limited to,mental health services,
Continuum of Care that was an HPC in requirements for HUD grants.The outpatient health services,and
the prior year and used Continuum requirements of 24 CFR part 84 apply to provision of medication,which are
funds for activities described under subrecipients that are private nonprofit provided to a person with a disability to
§578.71 must demonstrate that these organizations.The requirements of 24 address a condition caused by the
activities were effective at reducing the CFR part 85 apply to the recipient and disability.
number of persons who became subredpients that are units of general This provision further states that if
homeless in that community,to be purpose local government The match the purpose of the project is to provide
renewed as a HPC. requirement in 24 CFR 84.23 and in 24 substance abuse treatment services,
Selection.HUD will select up to 10 CFR 85.24 applies to administration recipients and subrecipients may
Continuums of Care each year that best funds,as well as Continuum of Care require program participants to take part
meet the application requirements and planning costs and UFA's financial in such services as a condition of
the standards set forth in§578.65. management costs.All match must be continued participation in the program.
Consistent with section 424 of the spent oa eligible activities as.required For example,if a Continuum of Care
McKinney-Vento Act,the interim rule under subpart D of this interim rule, recipient operates a transitional housing
provides a HPC designation for the except that recipients and subrecipients program with substance abuse treatment
i
Federal Register/Vol. 77, No. 147/Tuesday, July 31, 2012/Rules,and Regulations 45437
religious content"that offers greater over this requirement from the Shelter Section 578.93(b)(1)states that,in
clarity to the limitations placed on faith Plus Care program. consideration of personal privacy,
based organizations when using federal Fair Housing and Equal Opportunity housing may only be limited to a single
funds for their supportive services. requirements.The Continuum of Care, sex when such housing consists of a
Additionally,HUD is putting in place as well as its members and single structure with shared bedrooms
through this rulemaking the provision of sub recipients,are required to comply or bathing facilities such that the
Executive Order 13559 that directs the' with applicable civil rights laws. considerations of personal privacy and.
referral to alternative providers. Section 578.93,addressing • the physical limitations of the
Executive Order 13559 provides that if nondiscrimination and equal configuration of the housing make it
a beneficiary or prospective beneficiary opportunity • ,is provided appropriate for the housing to be limited
of a social service program supported by to offer greater to recipients to one sex
federal financial assistance objects to and subrecipients on the use of grant Further,§§578.93(b)(4)and(5)clearly
the religious character of an funds.Section 578.93(a)states that the outline instances when sex offenders or
organization that provides services nondiscrimination and equal violent offenders may be excluded from
under the program,that organization •opportunity requirements set forth is 24 housing,:snd when projects providing
shall,within a reasonable time frame CFR 5.105(a)apply.This includes,.but sober housing may exclude persons.
after the date of the objection,refer the is not limited to,the Fair Housing Act, HUD Section
d undparticular
permit
beneficiary to an alternative provider. Title.Vi of the Civil Rights Act of 1964, h
While HUD will benefit from OMB Section 504 of the Rehabilitation Act of program to be reserved for persons with
guidance on other provisions of the 1973(Section 504),and title II of the a specific disability when a federal
Executive Order,specifically those Americans with Disabilities Act. statute or executive order specifically
which the Working Group is charged to Section 578.93(b)explains when authnrims such a limitation.Section
provide recommendations,the reci ients and snbredpients may 578.93(b)(6)states that if the housing is
"referral„ of the Executive assisted with funds under a federal
Order is one that HUD believes it can serve a particular
subpopuulatian in transitional or proms that is limited by federal
immediately put in place.litJD may, permanent ho usin .As statute or executive order to a specific
g part of Apse
• following receipt of public comment requirements,recipients must also onsubpopulation.
�the
phousing may be
and farther consideration of this issue, p .Section that
sub l(7p voider
revise how recipients and subreci ients reeadmi •nister and activities Provides
document the eferral to other providers the most fed�s+t financial assistance in clarification to recipients of funds under
the most integrated setting appropriate this part as to when aproject can limit
when beneficiaries may assert to the needs of qualified individuals adm Ginn to a specifi c popnlation of
objections to the original provider:For with disabilities.This"integration homeless individuals and families based
now,HUD is that anymandate"requires that Him-funded oathe service package offered in the
objections and any iufeaals b
or activities enable
documented in accordance with the P project To help recipients better
individuals with disabilities to imeract understand these
recordkeeping provisions of§578.013. '
with nondiaahted persons to the fullest hs de a detailed
the
This section of the interim rule also liowiag Pip I?�
contains limitations on the types of extent ossible.Ia reviewing requests explanaation'of the regulatory provision,
eligible assistance that may not be for funding through the Continuum of along with a few examples.
combined in a single structure or Care NOFA,HUD will be considering Section 578.93(b)(7)states that
housing unit As the Continuum of Care each recipient's proposals to provide recipients may limit admission to or
integrated housing to individuals with de a for the housingto
assistance maybe combncreases the bined in a disabilities. subpopnlatio of homeless perons and
project from previous programs,HUD There are certain situations in which families who need the specialized.
has established standards hi this section a recipient or subrecipient may limit supportive services that are provided in
to provide recipients with clarity about housingto a specific subpopulation,so the housing.The regulation contains the
the types of activities that may not be long as edmiaainn does not discriminate following examples:Substance abuse
carried out in a single structure or against anyA protected class,as well es addiction treatment,domestic violence
housing T
unit instances where recipients or services,or a high-intensity package
Ter
mination of assistance.The sabrecipients may limit admission or designed to meet the needs of hard-to-
interim rule provides that a recipient provide a preference to certain reach homeless persons.However,
may terminate assistance to a subpopulations of homeless persons and §578.93(b)(7)further states that while
participant who violates program families who need the specialized the housing may offer services for a
requirements or conditions of services provided in the housing.For particular type of disability,no
occupancy.The recipient must provide example,§578.93(b)(2)states that the otherwise eligible individual with a
' a formal process that recognizes the due housing may be limited to homeless disability,or family that includes an
process of law.Recipients may resume veterans;so long as admission is not individual with a disability,who may
assistance to a participant whose denied based on any membership in a benefit from the services provided may
assistance has been terminated. protected class;a g.,homeless veterans be excluded on the grounds that they do
Recipients that are providing with families must be admitted. . not have a particular disability.Below
permanent supportive housing for hard- Similarly,housing may be limited to are general examples to offer guidance
to-house populations of homeless domestic violence victims and their on this subsection.Please note that
persons must exercise judgment and families or persons who are at risk of these examples are nonexbaustive;but
examine all circumstances in iuistitutionalization,so long as emphasize that the proper focus is on
determining whether termination is admission is not denied based on any the services available as part of the
appropriate.Under this interim rule, membership in a protected rlasc. Continuum of Care project as opposed
HUD has determined that a participant's Section 578.93(b)(3)states that to a person's category or subcategory of
assistance should be terminated only in housing may be limited to families with disability.While these general
the most severe cases.HUD is carrying children. principles are offered to help rtarify this
Federal Register/Vol. 77, No. 147/Tuesday, July 31, 2012/Rules and Regulations 45439
•
confidentiality of records pertaining to III.Regulations for HUD Homeless procedures may be omitted,however,if
any individual provided family violence Assistance Programs Existing Prior to HUD determines that,in a particular
prevention or treatment services under Enactment of HEARTH Act case or class of cases,notice andpublic
this program.The interim rule requges Because grants are still being comment procedure are"impracticable,
writtenprocedures to ensure the unnecessary,or y to the public
administered under the Shelter Plus interest."(See 24 CFR 10.1.)
security and confidentiality of all Care and the Supportirecords containing ve
HUD has determined that
identifyinginformation of any Heueing pro moons for it would be la this contraryto the public who for these programs in 24 CFR parts 582,and interest to two of the
•
individual or family applies583,respectively,will remain m the delay Prom .
and/or receives Continuum of Care regulations for the Continuum of Care
assistance. Code of Federal Regulations for the time 3 has provided
being.When no more,or very few, Program. Crs in the
Grant and project changes.The funding program
interim rule provides that recipients of ! remain under these programs, Consolidated and Further Continuing
HUD will remove the regulations in A ors Act,2012(Pub.L.112—
•
grantsmaynotmakeany significant P by aseparate rule(if no 55,approved November 18,2011)(FY
changes to use of gram funds without PPTQve
g� exist)or rupl them with 2012 ors Act).The FY 2012
prior HUD approval,evidenced by a APPToP
a savings clause,which will continue to Appropriations Act,under the account
grant amendment signed by HUD and
the recipient The interim rule provides govern the eve of the HST Fat" forfor Hnmeie Assistance Grants,
separate standards for appropriates not less than$1.593 billion
when a grant amendment is required for regulations. for the Continuum of Care and Rural
Continuums having only oneredpient, iv.conforming Regulations Housing.Stability programs.While
including UFAs,and Continuums In addition to establishing the new may federal programs,including HUD
having more than one recipient ors for the Continuum of Care programs,received a reduction in
Additionally,the interim rule provides regulations funding in the.FY 2012 Appropriations
contingencies thatmust be met before Proles,HUD is ems,which g the Act,Congress increased funding for
HUD willapprove the fallowing fi°ns,w}nch reference HUD's homeless assistance grants,
anumdm hese contingencies are the Shelter Plus Care Program and the including the Continuum of Care
Supportive Housing Frogiam,to include Additionally,the Conference
necessary to ensure that recipients meet P '
reference to the Continuum of Care Report accompanyingthe FY 2012
the capacity and to ensure requirements eligible
m progciam.These regulations are the A P (House Report the NOFA to ensue that ali�"hle Appropriations
112—
persons within the geographic area are regulations-pertaining to:(1)Family 284)states in relevant part,as follows:
better served and,since the Continuum Income and Family Payment; "The conferees express concern that
of Care program is a competitive 0 ts for Section 8 HUD continued to implement pre-
program,that the priorities established and Public Ho" ,,"1h"L HUD- HEARTH grant programs in FY 2011,
Assisted Horsing Serving Persons with dueto a lack ofThe
under the NOFA continue to be met. regulations.
Any changes to an approved grant or Disabilities,and Section 8 Project Based conferees direct HUD to publish at least
project that do not require a grant Assistance,the regulations.for which are interim guidelines for the Emergency
amendment,as set forth in this section, in 24 CFR part 5,subpart F,specifically, Solutions Grants and Continuum of Care
must be fully documentedin the §5.601(Pu rpose and APPh y), programs this fiscal year and to
recipient's or subrecipient's records. paragraphs(d)and(e)of this section; implement the-new grant programs as
Sanctions.The interim rile §5.603(Definitions),spenifl:ally the soon as possible so that the updated
establishes sanctions based on existing definition of.`Responsible Entity; policies and practices in HEARTH can
regulations and strengthens the §5.617(Self-Sufficiency Incentives for begin to govern the delivery of homeless
enforcement procedures and array of Persons with Disabilities—Disallowance assistance film:14 .,,(See Cone Rpt at
remedial actions and sanctions for . of Increase in Annual rncnme), page 319.Emphasis added.)Given this
recipients and Subr'ecipieats of paragraph(a)of this section;(2) congressional direction,HUD is issuing
Continuum of Care funds.These . Environmental Review Responsibilities this rule providing for regulations for
revisions draw from the requirements at for Entities Assuming HUD . the Continuum of Care program as an
24 CFR 85.43 and other HUD program Environmental Responsibilities,the interim rule.Having interim regulations
regulations. • regulations for which are in 24 CFR part in place will allow HUD to move
e Qose-out The interim rule provides 58,specifically§58.1(Purpose and forward.in making FY 2012 funds
that grants must be closed out at the end Applicability),paragraph(b)(3)of this available to grantees,and avoid a
of their grant term if recipients are not section;and(3)the Consolidated significant delay that would result from
seeking renewal.Section 578.109 of this Submissions for Community Planning • issuance,first,of a proposed rule.As
interim rule specifies the actions that and Development Programs,the
must be taken after the closeout, regulations for which are in 24 CFR part inapt or pummel,or to public property,
iacbiding grantee submission of 91,specifically,§91.2:(Applicability), loans,grants,benefits,or contracts are exempt from
financial,final performance,or other paragraph(b)of this section. - the advance notice and public comment
requirement of sections 553(b)and(c)of the APA.
reports required by HUD within 90 days v.T for> R� mg In its regulations in 24 CFR 10.1,HUD has waived
of theend of the grant term.Any unused the for advance notice andpoblic
funds must be deobligated end returned In accordance with its regulations on comment for matters that relate to publicproperty,
to HUD. rulemaking at 24 CFR part 10,HUD loans,grttave,benefits,or contracts,and has
publishes its_rules for advance °o� adt°andectaia+noti and rat
The`iater)m rule stipulates,for grants generally P rolemaking for these mattm
seeking renewal,that failure to submit public comments Notice and public s Although HUD's regulation m 24 CFR 10.1
final performance•reports,or other provide that HUD will involve public participation
reports required try HUD within 90 Z'�Administrative Procedure Act(5 U.S.C. in its rolemeking,this regnlatiooalso provides that
ays,ma a renewal funds, to be Subchapter�(APA),which governs�� notice and public procedure will he omitted RHEA)
rulemaldng,provides m section 553(a)that matters defines•is a particular case or class of cases that
withdrawn and grant funds expended involvinga military or foreign affairs function of the notice end public procedure are impracticable,
on the renewal grant to be repaid. United States or smatter relating to federal agency unnecessary,or contrary to the public interest
•
•
Federal Register/VoL 77, No. 147/Tuesday,.July 31, 2012/Rules and Regulations 45441
have a sienifirant economic impact on substantial direct compliance costs on , rule have been submitted to the Office
a substantial number of small entities. State and local governments and is not of Management and Budget;(OMB)
Notwithstanding HUD's required by statute,or the rule preempts under the Paperwork Reduction Act of
determination that this rule will not State law,unless the agency meets the 1995(44 U.S.C.3501-3520).In
have a significant effect on a substantial consultation and-fending requirements accordance with the Paperwork
number of small entities,HUD of section 6 of the Executive Order.This Reduction Act,an agency may not •
spedfically invites comments regarding final rule does not have federalism conductor sponsor,and a person is not
any less burdensome alternatives to this implications and does not impose to respond to,a collection of
rule that will meet HUD's objectives as substantial direct compliance costs on info ,;;;ii m,unless the collection
described in this preamble. - State and local governments nor
Executive Order 13132,Federalism Preempts State law iwtthin the meaning u�a currently valid OMB control
of the Riecuiive Order.
Executive Order 13132(entitled The burden of the information
"Federalism")prohibits an agency from Paperwork Reduction Act . • collections in this.interim rule is
public ing any rule that has federalism . The inforniation.collectian estimated as follows: -
implications if the rule either imposes requirements containedin this mterim
REPORTING AND RECORDKEEPING BURDEN
Intonation collection respondents
of Response Total annual Burden hours• Total animal
respondents (average r - per response hours
§578.5(a)Establishing the CoC. ....... ....»....».. ......•. .. • 450 1 450 8.0 •3,600
§578.5(b)fblshing the Board» 450 . 1 450 5.0
§578.7(a)(1)Hold CoC Meetings 450 2 900' 4.0 • 3,600
§578.7(a)(2)Invitation for New Members • 450 1 450 1.0 450
§578.7(ax4)Appoint convoltees 450 2 • 900 0.5 460
§578.7(ax5)Governance charter »»....»...». 450 1 450 7.0 3,150
§578.7(a)(6)and(7)Monitor performance and evanation 450 4 • 450. 9.0 4,050
§578.7(8)(8) Centralized.Cr coordinated aunt sys-
tem..».........».». »..� 450 1 450 - 8.0 3,800
§578.7(a)(9)Written standards »....»...»......:.»....» 450 1 450 5.0 2,250
§578.7(b)Designate HMIS».... .... .........».............» 450 • 1 Abe 10.0 4,500
' §578.9 Application for funds »....».»».».»..... • 450 1 450 _ 180.0 • 81,000
§570.11(c)Develop Ce0 plan 450 1 450 9.0. - 4,050
§578.21(c).Satisfying conditions..».....»....»....»....» •8,000 1 8,000 ' 4.0 ' 32,000'
§578.23 Fxecuting grant agreentants ......»»....».....» 8,000 1 8,000 1.0 13,000
§57e )AP_ Pea. . ..,.»........»:...»..........»..........»....» 10 " 1 10 4.0 40
§578.35(c)Appeal-denied or derxedsed funding 15 1 . 15 1.0 15
§578.35(d)Appearcompeting Coe - .10 1 10 5.0 50
§578.35(e)Appeal-Consolidated Plan genification ...» 5 1 5 2.0 10
§578.49(a)-Leasing exceptions - • 5 1 5 1.5 7.5
§578.65 HPC Standards 20 1 20 10:0 200
§578.75(a)(1) State and local requirements-,appropriate '
servlce.provision.......»..»... ....».......»..,...»....»..,..» 7,000 1 . 7,000 0.5 3,500
§578.75(a)(1) State and Iocal..requirernents--housing
codes 20 1 20 3.0. . 60
§578:75(b)Hotedhg quality standards 72,800 2 145,600 1.0 145,600
§578.75(b)Suitable dwelling size ...• . 72,800 2 145,600 • 0.08 11,648
§578.75(c)Meals.......................................,.........»..:..» 70,720 1 70,720 0.5 35;360
§578.75(e)Ongoing-assessment-"-"."of supportive services 8,000 •1 2000 1.5 12,000
§578.75(t).Reside ntiai.supervision.........„..»....»..». 6;600 3 19,800 0.75 14,850
§578.75(g)Partk�ation of homeless itrdMduals .........» 11,500 1 11,500 1.0 11,500
§578.75(h)Supportive service agreements ' 3,000• 100 30,000' 0.5 15,000 '
§578.17(a)Signed leases/occupancy agreements» 104,000 ' 2 • .208,0o0 . 1.0 206;000
•§578.77(b)Calculating occupancy charges.:.»......»...» 1,840 200 368,000 • 0.75 276,000
§578.77(c)Calculating nazi • 2,000 200 400,000 0.75 300,000
§578,81'(a)Use reskid ion......».».• ..,..».... »..»..........: 20 1 • 20 0.5 • 1 10
§578.91(a)Termination of assistance»....»...............»....... 400 1 400 . 4.00 1;600
§578.91(b)Due*sass for terminallon of assistance.:..... 4,500 1 4,500 3.0 • 13,500
§578.95(d)--Cantu of-Interest exceptions • 10 1 10- 3.0 30
• §578.103(a)(3)Documenting homelessness ». ...» 300,000 1 • 300,000 025 75,000
§578.1.09(a)(4)Documenting at risk of homeldeimess......., 10,0Q0 1 10,000 025 2,500
§578.103(a)(5)Doce!nenting hear**threat of harm .200 1 200 0.5 100
§578.103(a)(71 Documenting program,participant records 350,000. . 6 2,100,000 025 525,000
§578:103(a)(7)Documenting case management .»» 8,000 •12 96,000 1.0 96,000
§578.103(a)(13)Doiumentirg activities .» 8,000 1 8,000 1.0 .• 8,000
§578.103(b)Confidentiality procedures ..: ......»»»»..» 11,500 1 11,500 1.0 • 11,500 .
w
•
§578.105(a)Grant/project chrin9eS -UFAs......».».»
20 2 • 40 20 so
§578.105(b)Grant/prcject changes-multiple project appli- •
Cants . .800 1 800 20 , 1,600
Total ..»...................»....»..»»......................»...... • ,.. .»............---- ». 1,921,710.5
Federal Register/Vol. 77, No. 147/Tuesday, July 31, 2012/Ruless and Regulations 45443
r
At risk of hamelpc'ass.(1)An section,but qualifies as"homeless" part and that is composed of
individual or family who: under section 725(2)of the McKinney- representatives of organizations,
(i)Has an annual income below 30 Vento Homeless Assistance Act(42 including nonprofit homeless providers,
percent of median family income for the U.S.C.11434a(2)),and the parent(s)or victim service providers,faith based
area,as determined by HUD; guardians)of that child or youth if organizations,governments,businesses,
(ii)Does not have sufficient resources living with her or him. advocates,public housing agencies,
or it,,ort networks,e.g.,family, Centralized o>r coordinated school districts,social service providers,
• frien, ,faith-based or other social assessment system means a centralized mental health agencies,hospitals;
networks,immediately available to . or coordinated process designed to universities,affordable housing .
prevent them from moving to an coordinate program participant intake developers,law enforcement,
emergency shelter or another place assessment and provision of referrals.A organizations that serve homeless and
described in paragraph(1)of the centralized or coordinated assessment formerly homeless veterans,and
"Homeless"definition in this section; system covers the geographic area,is homeless aid formerly homeless
and easily accessed by individuals and persons to the extent these groups are
(iii)Meets one of the following families seeking housing or services,is represented within the geographic area
conditions: well advertized,and includes a and are available to participate.
(A)Has moved because of economic comprehensive and standardized Developmental disabilitymeans,as
reasons two or more times during the 60 assessment toa defined in section 102 of the
days immediately preceding the ChroaicalIyhomeless.(1)An Developmental Disabilities Assistance
application for homelessness prevention individual who: and Bill of Rights Act of 2000(42 U.S.C.
assistance; (i)Is homeless and lives in a place not 15002): .
(B)Is living in the home of another meant for human habitation,a safe (1)A severe,chronic disability of an
because of economic hardship; haven,or in an a",, ency shelter;and individual that—
(G.)Has been notified in writing that (ii)Has been h,i„>ess and living or (i)Is attributable to a amnia'or
their right to occupy their current residing in a place not meant for human physical impairment or combination of
housing or living situation will be habitation,a safe haven,or in an mental and physical impairments;
. terminated within 21 days of the date of emergency shelter continuously for at (ii)Is manifested before the individual
application for assistance; least one year or on at least four separate attains age 22;
D)Lives in a hotel or motel and the occasions in the last 3 years;and (iii)Is Mlikaly to continue indefinitely;
cost of the hotel or motel stay is not paid � (iii)Can be diagnosed with one or (iv)Results in substantial functional
by charitable organizations or by more of the following conditions: • limitations in three or more of the
federal,State,or local government substance use disorder,'serious mental following areas of major life activity:
programs for low-income individuals; illness,developmental disability(as (A)
Lives in a single-room occupancy defined in section 102 of the (B)Receptive and expressive
or efficiency apartment unit in which Developmental Disabilities Assistance language;
there reside more than two persons,or Bill of Rights Act of 2000(42 U.S.C. (DJ Mobility;
lives in a larger housing unit in which 15002)),post-traumatic stress disorder, .
there reside more than 1.5 people per cognitive impairments resulting from (E)Self-direction;
room,as defined by the U.S.Census brain injury,or chronic physical illness (F)Capacity for independentliving;
Bureau; or disability; (G)Economic self-sufficiency.
(F)Is exiting a puhlirly funded (2)An individual who has been (v)Reflects the individuals need for
institution,or system of care(such as a residing in en institutional care facility, a combination and sequence of special,
health-care facility,a mental health incite-line a jail,substance abuse or interdisciplinary,or generic services,
facility,foster care or other youth mental health treatment facility, individualized supports,or other forms
facility,or correction program or hospital,or other similar facility,for of assistance that are of lifelong or
•
institution);or fewer than 90 days and met all of the extended duration and are individually
(G)Otherwise lives in housing that criteriein paragraph(1)of this planned and coordinated:
has characteristics associated with definition,before entering that facility; (2)An individual front birth to age 9,
instability and an increased risk of or inclusive,who has a substantial
• homelessness,as identified in the (3)A family with an adult head of developmental delay or specific
recipient's approved consolidated plan; household(or if there is no adult in the congenital or acquired condition,may
(21 A child or youth who does not family,a minor head of household)who be considered to have a developmental
qualify as"homeless"under this meets all of the criteria in paragraph(1) disability without meeting three or more
section,but qualifies as"homeless" of this definition,includinga family of the criteria described in paragraphs
under section 387(3)of the Runaway whose composition has fluctuated while (1)(i)through(v).of the denition of
and Homeless Youth Act(42 U.S.C. the head of household has been "developmental disability"in this
5732a(3)),section 637(11)of the Head homeless: section if the individual,without
Start Act(42 U.S.C.9832(11)},section ' Collaborative applicant means the services and supports,has a high
41403(6)of the Violence Against eligible applicant that has been probability of meeting these criteria
Women Act of 1994(42 U.S.C.14043e— designated by the Continuum of Care to later in life.
2(6)),section 330(h)(5)(A)of the Public apply or a.grant for Continuum of Care Eligible applicant means a private
Health Service Act(42 U.S.C. planting funds under this part on behalf nonprofit organization,State,local
254b(h)(5)(A)),section 3(m)of the Food of the Continuum. government,or instrumentality of State
.and Nutrition Act of 2008(7 U.S.C. Consolidated plan means the HUD- and local government.
2012(m)),or section 17(b)(15)of the approved plan developed in accordance Emergency shelter is defined in 24
Child Nutrition Act of 1966(42 U.S.C. with 24CFR 91. CFR part 576.
1786(b)(15));or Conihman[of Care and Continuum Emergency Solutions Grants(ESG)
(3)A child or youth who does not means the group organized to carry out means the grants provided under 24
qualify as"homeless"under this the responsibilities required under this CFR part 576.
•
Federal Register/Vol. 77, No. 147/Tuesday, July 31, 2012/Rules•and Regulations 45445
subgrant from the recipient to carry out to comply with the requirements of Continuum of Care assistance.At a
a project paragraph(b)of this section. minimum,these written standards must
Transitional housing means housing, include:
where all program participants have olisracare.7of the*mono= (1).Policies and procedures for
signed a lease or occupancy agreement, (a) the Continuum of Care. e°ci�'n eligibility� d�assistance under famili��
the purpose of which is to facilitate the The Continuum of Care must: n Policies and procedures for Pam.
_ movement of hrimalaea individuals and (1)Hold meetings of the fall and
families into permanent housing withindetermining pziaritizimg which
2424.months or such longer period as membership,with published agendas,at eligible iadivirMa�c and iamalies viiill
.m determines .The least semi-annually; receive transitional housing assistance;
HUD de Participant must have a lease (2)Make an invitation for new (ii)Policies and procedures for
Programor occupancy agreement fora term of at members to join publicly available detaining and prioritizing which
least one month that ends in months within the geographic at least annually; eligible individuals and families will
and be extended (3)Adopt and follow a written receive rapid rehousing assistance;
Unified cannot be ei tended Agency(IJFA)means process to select a board to act on behalf (iv)Standards for determining what
selected the •
of the Continuum of Care.The process percentage or amount of rent each
an eligible applicantmust be reviewed;updated,and
Continuum of Care to apply for a grant approved by the Continuum at leas participantmust asasiistance,
for the entire Continuum,which has the once every 5 years; receiving rapidrehousing
capacity to carry out the duties in (v)Policies and procedures for
§578.11(b),which is proved HtJ • (4)Appoint additional committees, determining and pnoritizing which
aP_. by' subcommittees,or w Ps; eligible individuals and families will
and to which HUD awards a grant (5)In consultation With
Victim service provider means a collaborative applicant and the HMIS assistance;ass permanent supportive housing
private nonprofit organization whose Lead,develop, and
follow,and update (�Where the Continuum is
primary mission is to provide services annually a governance charter,which rl cigi+ated a high performing
to victims of domestic violence,dating. will include.all procedures and policies comet
violence,sexual assault,or stalling. needed to comply withsubpart B of this as es described ibed in subpart G of
F y this part,policies and procedures set
This term includes rape crisis centers, part and with HMIS requirements as forth in 24 CPR 576.400(e)(3)(vi),
battered women s shelters,domestic prescribed byHUD;and a code of (e)(3)(vii),(e)(3)(viii),and(e)(3)(ix).
violence transitional housing programs, conduct and recusal process for the (b)Designating and operating an
and other programs. board,its chair(s),and any person acting IDS.The Continuum of Care must:
Subpart l3-Eamblrshing and on behalf of the board; (1)Designate a single Homeless
(6)Consult with recipients and Management Information S
ysteni
Operating a Continuum of Care subrecipients to establish perfn*manre
for 'on and ��geographic
§578.5 Estab�' the coar5muum of appropriatePoP ( ) area,
Care. program type,monitor re ient and (2)Designate an eligible applicahtco
ciP� manage the Continunrm's�H1HIiS;which
(a)The Continuum of Care. subrecipient performance,evaluate will be known as the HMIIS Lead;
Repress aonti from relevant outcomes,and take action against poor (3)Review,revise,and approve a
organizations within a geographic area Pam' Prig Plan,security plan,and data
shall establish a Continuum of Care for (3 )ivalurate outcomes of projects qty PIr'n fior the HNIIS.
the geographic area to carry out the funded under the Emergency Solutions (4)Ensure consistent participation of
duties a part Relevant Grants program and the Continuum of recipients and subrecipients in the
dutesof is nonprofit �program,and report to HUD; Pam;and
organizationshomeless assistance includep n npros,victim (8)In consultation with recipients of (5)Ensure the HMIS is administered
Emergency Solutions Grants program in compliance with re ents
service providers,faith-based funds within the geographicarea, prescribed HUD.
organizations,governments,businesses, establish and operate either (c)Coietinnum of Care The
advocates,public housing agencies, centralized or coordinated assessment Pig•
school districts,social service providers, includes:
must develop a plan that
system that provides as initial, includes:
mental health agencies,hospitals, • comprehensive assessment of the needs (1)Coordinating the implementation
universities,affordable housing of individuals and families for
developers,law enforcement,and housing of a housing and service system within
organizations that serve veterans and and services.The Continuum must its geographic area that meets the needs
develop a specific policy to guide the of the homeless individuals(including
homeless and formerly homeless operation of the centralized or .
individuals. P unaccompanied youth)and families.At
(bv du board.The Continuum of coordinated assessment system on how a minimum,:such system encompasses
establish a board o behalf Care its will address the needs of the following:
must the Continuum ardtg thcponcees individuals and families who are (i)Outreach,engagement,and
establishedof as a re fleeing,or attempting to flee,domestic assessment; .
q IV violence,dating violence,sexual (ii)Slielter,housing,and supportive
§.578.7(a)(3)and must comply with the assault,or stalking,but who are seeking services;
t of-i
conflicnterest requirements at shelter or services from nonvictim n Preventionstrategies.
§578.95(b).The board must: DM
providers.This system.must (2)Planning for a nducting,at
(1)Be representative of the relevant comply with any requirements least biennially,.a point-in-time count of
organizations and of projects serving established by HUD by Notice. homeless persons within the geographic
homeless subpopulations;and (9)In consultation with recipients of area that meets the following
(2)Include at least one homeless or Emergency Solutions Grants program requirements:
formerly homeless individual. funds within the geographic area, (1)Homeless persons who are living in
(c)Transition.Continuums of Care establish and consistently follow a place not designed or ordinarily used
shall have 2 years after August 30,2012 written standards for providing as a regular sleeping accommodation for
Federal Register/Vol. 77, No. 147/Tuesday, July 31, 2012/Rules and Regulations 45447
(i)Two percent will be allocated is the base for the maximum award months in the case of funds for
among the four insular areas(American amount for the Continuum. acquisition,rehabilitation,or new
Samoa,Guam,the Commonwealth of (4)Establishing the maximum award construction.The 12-month deadline
the Northern Marianas,and the Virgin amount.The maximum award amount may be extended by HOD for up to 12
Islands)on the basis of the ratio of the for the Continuum is the FPRN amount additional months upon a showing of
population of each insular area to the plus any additional eligible amounts for compelling reasons for delay due to
population of all insular areas. Continuum planning;UFA costs; factors beyond the control of the
(ii)Seventy-five percent of the adjustments to leasing,operating and recipient or subrecipient
remaining amount will be allocated, rental assistance line items based on
nAing the Community Development rharipp_a to FMR;and available bonuses. 551823 Exew8ng g .
Block Grant(CDBG)formula,to (a)Deadline.No later than 45 days
metropolitan cities and urban counties. §578.19 APPlicatiall Process. from the date when all conditions are
that have been funded under either the (a)Notice of Funding AvaiIability• satisfied,the recipient and HUD must
Emergency Shelter Giants or Emergency After enactment of the annual execute the grant agreement.
Solutions Grants programs in any one appropriations act for the fiscal year, (b)Grunt agreements.(1)Multiple
year since 2004. HUD will issue a NOVA in accordance . applicants for one Continuum.If a
(iii)The amount remaining after the with the requirements of 24 CFR part 4. Continuum designates more than one
allocation under paragraphs(a)(1)and (b)Applications.All applications to applicant for the geographic area,HUD
(2)of this section will be allocated, HUD,including applications for grant will enter into a grant agreement with
using the CDBG formula,to funds and requests for designation as a each designated applicant for which an
metropolitan cities and urban counties UFA or HPC,must be submitted at such award is announced.
that have not been funded under the .time and in such manner as HUD may • (2)One applicant for a Continuum.If
Emergency Solutions Grants program in require,and contain such information as a f'nntinnmm designates only one
any year since 2004 and all other HUD determines necessary.At a applicant for the geographic area,after
counties in the United States and Puerto minimum,an application for grant awarding funds,HUD may enter into a
Rico. funds must contain a list of the projects get agreement with that applicant for
(4)If the calculation in paragraph for which it is applying forfands;a new awards,if any,and one grant
(a)(2).of this section results in an description of the projects;a list of the agreemeurt'for renewals,Continuum of
amount less than the amount required to projects that will be carried out by Care planing,and UFA costs,if any.
renew all projects eligible for renewal in subrecipients and the names of the These two grants will cover the entire
that year for at least one year,after subrecipients;a description of the hic area.A default the
making adjustments proportionalto subpopulations of homeless or at rids of i geographic
under one of those�grant
increases in fair market rents for homelessness to be by prof ; agreements will also be a default under
geographic area for leasing,:operating, the number of units to be provided and/ the other.
and rental assistance for permanent or the iimaher of persons to be served (3) Unified Funding Agencies.if a
housing,HUD will reduce, •by each project;a budget request by Continuum is a UFA that HUD has
proportionately,the total amount project;and reasonable assurances that approved,then HUD will enter into one
required to renew all projects eligible the applicant or the subrecipient,will grant agreement with the UFA for new
for renewal in that year for at least one own or have control of a site for the aids,if my,and one grant agre=re .
year,for each Continuum of Care.HUD proposed project not later than the for renewals,Continuum of Care
will publish,via the NOFA,the total expiration of the 12-month period planning;and UFA costs,if any.These
dollar amount that every Continuum beginning upon notification of an award two grants will cover the entire
will be required to deduct from renewal for grant assistance. geographoc area.A default try the UFA
projects Continuum wide. uund agreements
one of those grant
(b)Calculating a Continuum of Care's §5i8.21 Awarding funds. will also a default under ee other.
maximum award amount.(1)Establish (a)Selection.HUD will review Recipients
the PPM amount.First,HUD will total applications in accordance with the will Required agreements.
the PPRN amounts for each guidelines and procedures provided in hiohd to�e recipient metropolitan city,urban county,other the NOFA and will award funds toagrees:
county,and insular area claimed by the recipients through a national (1)To ensure the operation of the
Continuum as part of its geographic competition based on selection criteria Project(s)in accordance with the
area,excluding any counties applying as defined in section 427 of the Act provisions of the McKinney-Veto Act
for or receiving funding from the Rural (b)Armeuncemeat of awards.HUD and all requirements under 24 CFR part
Housing Stability Assistance program will announce awards and notify 578;
under 24 CFR part 579. selected applicants of any conditions (2)To monitor and report the progress
(2)Establishing renewal demand. imposed on awards.Conditions must be of the project(s)to the Continuum of
Next,HUD will determine the renewal satisfied before HUD will execute a Care and HUD;
demand within the Continuum's grant agreement with the applicant. (3)To ensure,to the maximum extent
geographic area.Renewal demand is the (c)Satisfying conditions.HUD will practicable,that individuals and
sum of the annual renewal amounts of withdraw an award if the applicant does families experiencing homelessness are
all projects within the Continuum not satisfy all conditions imposed on it. involved,through employment,
eligible to apply for renewal in that Correcting all issues and conditions provision of volunteer services,or
fiscal s competition,before any attached to an award must be completed otherwise,in constructing,
adjustments to ntal assistance,leasing, within the time frame established in the rehabilitating,maintaining,and
and operating line items based on FMR NOFA.Proof of site control,match, operating facilities for the project and in
changes. environmental review;and the providing supportive services for the
(3)Establishing PRIN.The higher of documentation of financial feasibility project;
PPRN or renewal demand for the must be completed within 12 months of (4)To require certification from all
Continuum of Care is the FPRN,which the announcement of the award,or 24 subrecipients that
Federal Register/Vol. 77, No. 147/Tuesday, July 31, 2012/Rules and Regulations 45449
proposed project or activities by (ii)Up to 100 percent of the amount §578.35. Appeal.
combining assistance under for leasing and operating in the final (a)In general.Failure to follow the
• program with other governmental . year of the prior funding period procedures or meet the deadlines
housing assistance from federal,State, adjusted in proportion to changes in the , established imthis section will result in
or local agencies,including assistance FMR for the geographic area;and . denial of the.1 peal.
such es tax concessions or tax credits. (iii)For rental assistance,up to 100 (b)Solo ,,.• rests.(i)Who may
swam Envireemeerel• review percent of the result of multiplying the appeal.Nonprofits,States,and local
(a) under this part are • number and unit size(s)in the giant governments,and instrumentalities of
subject(a)Activities o environmental agreement by the number of months in State or local governments that
HUD under 24 on part review0.The by the renewal grant term and the attempted to participate in the
applicable FMR. Continuum of Care planning process in
recipient or subrecipieat shall supply (d)Review criteria.(1)Awards made the geographic area in which they
all available,relevant information under title IV of the Act;as in effect op :that believe they were denied
necessary for HUD to perfuarm,for each before A 30, the right to participate it a reasonable
prop�y'any environmental review in tst . 2012 are eligible far manner,and that submitted a solo
required by 24 CPR part 50.The renewal in the Continuum of Care application for funding by the
recipient or subrecipient must carry out prop even if the awardees would not licathm deadline established in the
mitigating measures required by HUD or be eligible for a new grant under the aPP
select an alternate le program,so long as they continue to NOFA, appeal the decision of theb propy. Continuum to HUD.
HUD may eliminate from consideration serve the samepopulatioa and the same . (2)Notice of intent to appeal.The
any application that would an number of persons or units in the same
solo applicant must submit a written
Environmental Impact Statement type of housing as identified in their
most recently aamended.grant agreement ��of itnrrt m appeal,with a copy
(b)The recipient or aubrecipient,its signed before Augustapplication.
the Continuum with their funding
P�j�Partners,and their contractors 30,.2D12.Grants applicatian. �
will be renewed if HUD receives a (3)Deadline No
may ire,rehabilitate,convert, certification from the Continuum that
c e reppar,dispose of,demolish,or. later than 30 days after the date that
Property for a project under there is a demonstrated need for the Hop announces the awards,the solo
this part,or commit or eland HUD or compliedproject,and with finds that the project applicant shall submit in writing,with
local funds for such eligible activities proms requirements Fs a copy to the Continuum,all relevant
under this Part,until HUD has applicable before August 30,2012.For evidence sepp its claim,in such
performed an environmental review P ° of mroeeting the requirements of manner as.�may require by Notice.
under CFR part 50 said the recipient 'a P1 will continue to be (4)Response from the Continuum of
r 24iCFR Pert °ende HUD administered in accordance with 24 Care.The.Continuum shall have 30 days
C
of the CFR 582.330,if the project received from the date ofits receipt of the solo •
approval ofunder the Shelter Plus Care applicant's evidence to odd to HUD
g 578.33 Renewals. program,or 24 CFR 583.325,if the in wig and in such respond
manner as HUD
(a)in general.Awards made under project received funding under the may require,with a copy to the solo '
tive
Suppor Housing
this part and title IV of the Act,as in Program. lucent
effect before' t 30,2012(the (2)Renewal o jawards made after (5)Decision.HUD will notify the solo
Supportive Housing Program and the August 30,2O12:Review criteria for applicant and the Continuum of its
Shelter Plus Care program),may competitively awarded renewals made decision within 60 days of receipt of the
renewed to continue ongoing leasing, after August 30,.2012 will be described Condit._ response.
operations,supportive services:rental in the NOFA. ' (6)Funding permitted
finds that the solo
assistance,HMIS,and administration (e)Unsuccessful projects.HUD may applicant was not permitted to
beyond the initial funding period.To be renew a project that was eligible for participate in the Continuum of Care
considered for funding,recipients must renewal in the competition and was part planning process in a reasonable
submit a request in a foam specified by of an application that was not funded make solo en HUD may award a grant
HUD,must meet the requirements of despite having been submitted on time, to the solo applicant when funds next.
this Part,and must submitthe request is the manner required by HUD,and become.evailable and may direct the
within the time frame established by containing the information Copnnum m Care to take remedial
HUD. . HUD upon a finding that the project steps to ensure reasonable participation
• (b)Length of renewal.HUD may meets the purposes of the Continuum of is tare haute.HUD may also reduce the
award up to 3 years of funds for Care program..The renewal will not award to the or decreased
applicant(s).
supportive services,leasing,HMIS,and exceed more than one year and will be (c)Denied or funding (1)
. operating costs•Renewals of tenant- under such conditions as HUD deems Who may hied h:Eligible applicants
based and sponsor-baled rental appropriate, that are denied hinds by HUD,m that
assistance maybe for up to one year of (f)Annual Performance Report requested more funds than HUD
rental assistance.Renewals of project- condition.HUD may terminate, the awarded to writtent may appeal, such
form
based rental assistance maybe for up to renewal of any grant and the anbyd manner as Hay filing a in sire by
15 years of rental assistance,subject to recipient to repay the renewalgrant ifi Notice,thin 45 days may require of
availability of annual appropriations. (1)The recipient fails to timelyof the dateaward.
(c)Assistance available.(1) submit a HUD Annual Performance HUD's edeanno n.HuD of the he
Assistance during each yeasof a Report(APR)for the grant year applicant
of its HUD will notify the
renewalperiod maybe for: immediately of decision on the appeal
(i) to percent ofothe amount prior to renewal;or -within 60 days of HUD's receipt of t the
Up P (2)The recipient submits an APR that written appeal.HUD will reverse a
for supportive services and H US costs HUD deems unacceptable or shows decision only when the applicant can
in the finalyear of the prior funding noncompliance with the requirements show that HUD error caused the denial
period; of the grant and this part or decrease.
'
Federal Register/Vol. 77, No. 147/Tuesday, July 31, 2012/Rules and Regulations 45451
I If
from thist if the Violence (7)Establish and operate an HMIS or .(5)ParticipatingParticipatingin the consolidated
Against Women
oquuemen plan(s)of the jurisdictions)in the
omen Act of 1994(42 U.S.C. comparable database;andlnc area;and
13925 et seq.)or the Family.Violence (8)Establish and cagy out a ge og i ;and��
Prevention and Services Act(42 U.S.C. Continuum of Care planning processapplication to HUD sonu behalf of the
10401 et seq.)prohibits the recipient and operate a Continuum of Care. a pie Conn to HU of Care membership,
carrying out the project from making its (c)Multiple Purposes.Structures used including conducting a sheltered and
housing conditional an the participant's to provide housing,supportive housing, un ltered m a and .
(ac 2Tmnsition� supportive activities or as a facility for other data collection as by
also be used for
Transitional housing facilitates the other purposes.However,assistance HUD.
(c)Monitoring costs.The costs of
movement of homeless individuals and under this part will be available only in monitoring,recipients and scosts of ems
families to PH within 24 months of proportion to the use of the structure for and enforcing coien and with programp
entering TH.Grant funds maybe used supportive housing or supportive a are eligible.
for acquisition,rehabilitation,new services.If eligible and le .
construction,leasing,rental assistance, autiviiies are carried out in separate §eyg g1 Unified Funding Agency
operating costs,and supportive services. portions of the same structure or in (a)In general.UFAs may use up to 3
(3)Supportive Service Only(SSO). separate structures,grant funds may not ' percent of their FPRN,or a maximum
Funds may be used for acquisition, be used to pay for more than the actual amount to be established by the NOFA,
• rehabilitation,relocation costs,or cost of acquisition.construction.or whichever is less,for fiscal control and
leasing of a facility from which rehabilitation of the portion of the costs necessary to assure the
• supportive services will be provided, structure or structu es used for eligible proper disbursal of,aid accounting for,
and supportive services in order to activities.If eligible and ineligible federal funds awarded to subrecipients
provide supportive services to activities are carried out in the same under the Cont nmma of Care
unsheltered and sheltered homeless structure,the costs will be prorated (b)UFA costs.UFA costs ludo
. persons far whom the recipient or based on the amount of time that the costs of ensuring that all financial
subredpient is not providing housing or space is used for eligible versus transactions carried out under the
housing assistance.SSO includes street ineligible activities. Continuum of Care program are
outreach. 575.39 'Continuum of Care Planning
conducted and records are maintained
(4)HMLS.Funds may be used by § in accordance with generally accepted
Leads to lease a structure in acrivities. accounting principles,including
which the HMIS is operated or as (a)In general Collaborative arranging for an annual survey,audit,or
operating funds to operate a structure in applicants may use np to 3 percent of evaluation of the financial records of
which the HMIS is operated,and for their FPRN,or a maximum amount to be each project carried out by a
othercosts eligible in§578:57. established by the NOFA,for costs of: subredpiexmt funded by a grant received
(5)Homelessness prevention.Funds (1)Designing and carrying out a through the Continuum of Care
maybe used by recipients in collaborative process for the �a�•
Continuums of Care-designated high- development of an application to HUD; (c)Monitoring costs.The costs of
performing communities for housing (2)Evaluating the outcomes of- monitoring subrecipients and enforcing
_ relocation and stabilization services, projects for which funds are awarded in compliance with program requirements.- and short and/or medium►term rental the geographic area under the are eligible for costs.
assistance,as described in 24 CFR Continuum of Care and the Emergencg578.43
Acquisition.
and 24 CFR 576.106,.that are Solutions Grants programs;and g
necessary to prevent an individual or (3)Participating in the consolidated Grant funds maybe used to pay up to
family from becoming homeless. plan(s)for the geographic area(s). 100 percent of the cost of acquisition of
(b)Uses of assistance.Fonds are (b)Continuum of Care planning real property selected by the� ie t of r
available to pay for the eligible Costs activities.Eligible planning costs subrecipient for use in the p
listed in§578.39 through§578.63 when include the costs of; housing or supportive services for
used to: (1)Developing a connmunitywide or homeless persons.
(1)Establish new housing or new re"onwide process involving the § RetuabiNfatian,
facilities to provide supportive services; ordination of nonprofit homeless (0 Use.Grant funds maybe used to
(2) nsorder
housingproviders,victim service providers,
Pay up to 100 percent of the cost of
Expand existing a number
facilities in order to iacreasts,
faith-based moons, rehabilitation of strictures to provide
of homeless persons served; businesses,advocates,public housing
(3) existing g h0 withand ..acres,school districts,social service housing or supportive services to
locafacilities into compliance State and roviders,menial health' s h ess pe s costs.
ale
standards,d government described health and§ safety hospitals,universities,affordable rehabilitation costs include installing
as e anent578.8 ; housing developers,law enforcement, ceyt ye energy m_ ,and
(4)Preserve existing permanent organizations that serve veterans,and bringing
anmim �to State
housing and facilities that provide supportive services; homeless and formerly homeless and local government health and safety
(5)Provide
individuals;de supportive services for standards.
residents of supportive housing or for (2)Determining the geographic area (c)Ineligible costs.Grant funds may
homeless persons not residing in : that the Continuum of Care will serve; not be used for rehabilitation of leased
supportive h,
(3)Developing a Continuum of Care property,
(6)Continue ,,,-.'i_permanent s u; 578.4T New construction.
housing when the recipient hffs received (4)Evaluating the outcomes of §
funding under this part for leasing, projects for which funds are awarded in (a)Use.Grant funds may be used to:
supportive services,operating costs,or the geographic area,including the (1)Pay up to 100 percent of the cost
rental assistance; Emergency Solutions Grants program of new construction,including the
Federal Register/Vol. 77, No. 147/Tuesday, July 31, 2012/Rules and Regulations 45453
-assisted unit to protect their health and providing the housing assistance participants.If the supportive services
safety. descried in the application for the full are provided in a supportive service
(d)Sponsor-based rental assistance. 5-year period. facility not contained in a housing
Sponsor-based rental assistance is (3)A recipient must serve at least as structure,the costs of day-to-day
provided through contracts between the many program participants as shown in operation of the supportive service
recipient and sponsor organization.A its appflical,aon for assistance. facility,including maintenance,repair,
sponsor may be a private,nonprofit (4)lithe in each grant . building security,furniture,utilities,
' organization,or a community mental reserved for rental assistance over the and.equipment are eligible as a -
health agency established as a public grant period exceeds the amount that supportive service.
nonprofit organization.Program will be needed to pay the actual costs (1)Supportive services must be
participants must reside in housing of rental assistance,due to such factors necessary to assist program participants
owned or leased by the sponsor.Up to as contract rents being lower than FMRs obtain and maintain housing.
5 years worth of rental assistance may and program participants being able to (2)Recipients and subrecipients shall
be awarded to a project in one pay a portion of the rent,recipients or conduct an annual assessment of the
competition. subrecipients may use the excess funds service needs of the program
(e)ProjectProject-based rental assistance. for covering the costs of rent increases, participants and should adjust services
Project-based rental assistance is or for serving a greater number of accordingly.
provided through a contract with the program participants. (b)Duration..(1)For a transitional
owner of an existing structure,where (i)Vacancies.If a unit assisted under homingsupportive services
the ownerto lease the subsidized this section is vacated before the mad
agrees to residents
units toparticipants.Programon of the lease,the assistance for mustgh made availableo
program �� throughout the duration of their
participants will not retain rental the unit may continue for a maximum residence in,the project,
assistance if they move.Up to 15 years of 30 days from the end of the month (2)Permanent supportive housing
of rental assistance maybe awarded in in which_the unit was vacated,unless projects must provide supportive
one competition. occupied by another eligible person.No services for the residents to enable them
(f 1 Gent amount.The amount of additional assistance will be paid until to live as independently as is
rental assistance in each project will be the unit is occupied by another eligible • practicable throughout the duration of
based on the number and size of units person.Brief periods of stays in their residence in the project. •
proposed by the applicant to be assisted institutions,not to exceed 90 days for (3)Services may also be provided to
over the grant period.The amount of each occurrence,are not considered for„, residents of transitional housing
rental assistance in each project will be • vacancies, and current residents of permanent
calculated by multiplying the number 0)Property damage.Recipients and housing who were homeless in the prior
and size of units proposed by the FMR subrecipients may use giant funds in an 6 mrmthg for no more than.6 months
of each unit on the date the application amount not to exceed one month's rent after leaving transitional housing or
is submitted to HUD,by the term of the to pay for any damage to housing due hnmeiessness,respectively,to assist
grant to the action of a program participant their to independent living.
(g)Rent reasonableness.HUB will This shall be a one-time cost per R uuid r adjustment depenmust
only provide rental assistance for a unit participant,incurred at the time a re(4)Rapid rehousing projects most
if the rent is reasonable.The recipient participant exits a housingnet :- withquire tbe program participant tless than to oncemeet
or subrecipient must determine whether (k)Resident rent.Ret must be a case manager not less
the rent charged for the unit receiving calculated as provided in§578.77. per month as set forth in
rental assistance is reasonable in Rents collected from program §578.37(a)(1)(ii)(F),to assist the
relation to rents being charged for parcipants are program income and program participant in iryvntaining
comparable unassisted units,taking into maybe used as provided under long-term housing stability.
account the location,size,type,quality, §578.97. (e)Special populations.All eligible
amenities,facilities,and management (1)Leases.(1)Initial lease.For project- cede are eiigble to the same extent for
and maintenance of each unit based,sponsor-based,or tenant-based program Participants who are
Reasonable rent must not exceed rents rental assistance,program participants unaccompanied homeless youth;
persons liaingwith um,".`" S;and
currently being charged by the same must enter into a lease agreement for a Victims of domestic violence,dating
owner for comparable unassisted units. term of at least one year,which is violence,serval assault,or stalking.
(h) of grant.(1)The amount terminable for cause.The leases must be
of assistance in each project will automatically renewable upon (d)rnPT:pjhie costs.Any cost that is
be reserved for rental assistance Over the expiraticm for terms that are a minimum not described as an eligible cost under
grant period.An applicant's request for of one month long,except on prior this section is not an eligible cost of
rental assistance in each grant is an notice by either party. providing supportive services using
estimate.of the amount needed fat rental (2)Initial lease for transitional Continuum of Care program funds.Staff
assistance.Recipients will make draws housing.Program participants in and the costs of obtaining
from the grant funds to pay the actual transitional housing must enter into a Professional licenses or certifications
costs of rental assistance for program ' lease agreement for a term of at least one needed to provide supportiveservices
participants. month.The lease must be automatically are not eligible costs.
- (2)For tumid-based rental assistance, renewable upon expiration,except on (e)Eligible costs.
on demonstration of need: prior notice by either party,up to a - (1)Annual Assessment of Service
(i)Up to 25 percent of the total rental maximum term of 24 months, Needs.The costs of the assessment
assistance awarded maybe spent in any required by§578.53(a)(2)are eligible
year of a 5-yen grant term;or . §578.53 Swiportive services. costs.
(ii)A higher percentage if approved in (a)In general.Grant funds maybe (2)Assistance with moving costs.
advance by HUD,if the recipient used to pay the eligible costs of Reasonable one-time moving costs are
provides evidence satisfactory to HUD supportive services that address the eligible and include truck rental and
' that it is timer-ally committed to special needs of the program hiring a moving company.
•
Federal Register/Vol. 77, No. 147/Tuesday, July 31, 2012/Rules and Regulations 45455
n o
potential program participants,are share in the cost of car repairs or (iv)Obtaining technical support;
e le. maintenance as a condition of receiving (v)Lansing office space;
(I))Eligible costs include the outreach assistance with car repairs or (vi)Paying charges for electricity,gas,
worker's transportation costs and a cell maintenance. water,phone service,and high-speed
phone to be used by the individual (1h)Utility deposits.This form of data transmission necessary to operate
performing the outreach. .assistance consists of paying for utility or contribute data to the HMIS;
(ii)Component activities and services deposits.Utility deposits must be,a one- (vii)Paying salaries for operating
consist of initial assessment crisis time fee,paid to utility companies. HMIS,including:
counseling;addressing urgent physical (17)Direct provision of services.If the (A)Completing data entry;
• needs,such as providing meals, service described-in paragraphs(e)(1) (B)Monitorieg and reviewing data
blankets,clothes,or toiletries;actively through(e)(16)of this section is being quality;.
connecting and providing people with directly:deliveredby the recipient or (C)Completing data analysis;
information arid referrals to homeless subreeipient,eligible costs for those (D)Reporting to the HMIS Lead;
and mainstream programs;and services also include: (E)Training staff on using the HMIS; .
pt,blir+zing the availability of the (i)The costs of labor or supplies,and and
housing and/or services provided materials incurred by the recipient or (F)Implementing and complying with
within the geographic area covered by subrecipient in directly providing HMIS requirements;
the Continuum of Care. supportive services to program (viii)Paying costs of staff to travel to
(14)Substance abuse treatment participants;and and attend HP-sponsored and HUD-
services.The costs of program (ii)The salary and benefit packages of approved training on HMIS and
participant intake and assessment, the recipient and subrecipient staff who programs authorized by Title IV of the
outpatient treatment,group and directly deliver the services. McKinney-Vento Homeless Assistance
individual counseling,and drug testing §57as5 .costs. Act; staff travel costs to
are eligible.Inpatient detoxification and (a)Use.Grant,funds may, used to (ix)Paying
other inpatient drug or alcohol conduct intake;and
treatment are ineligibla pay the costs of the day-to-day operation (x)Paying participation fees charged
(15)Transportation.Eligible HA
coats are: of transitional and permanent housing by the MS Lead,es authorized by
(i)The costs of pragramparticipant's . in a single structure or individual HUD,if the recipient or subrecipient is
travel on public transportation or in a housmt omits. not the HMIS Lead.
vehicle provided by the recipient or �)RnPl7i1P .(1)The maintenance (2)If the recipient or subrecipient is
subrecipient to and from medical care, . and Tepa of housing; the HMIS Lead,it may also use
(2)Property taxes and insurance; Continuum of Care funds to pay the
employment,child care,or other (3)Scheduled payments to a reserve costs of
services eligible under a fs section. fur replacement of major systems of the and maintainin HMIS
(ii)Mfleage aIIowance for service (i)•Bg E
workers to visit program participants • housing(provided that the payments software or data;
and to out housing quality must be based on the ruespeful life of the (ii)Backing np,recovering,or
inspections; system
m and expected securityfora structure ement cost);
reparnE HMIS software or data;
• �� [ )Building (' ) P� �customizing,(iii)The cost of purchasing or Inswing where more than 50 percent of the units m U ..... .and.
a vehicle in which staff transports elhanring the mvllS;
P of P or area is paid for with grant funds; (iv) and warehousingdata,
r artist ants and/or staff 1l
serving program participants; (5)131eciricity,gas,and including development of.a data
(iv)The cost of gas,insurance,taxes, (7)Equipment(7)Furniture;and . warehouse for use in aggregating data
and maintenance for the vehicle; (c)fie .Program funds • from subrecipients using multiple
(v)The costs of recipient or may not be used for rental assistance software systems;
subrecipient staff to accompany or assist and ape nd ing costs in the same project (v)Administering the system; •
Program Participants to utilize Public Program funds may not be used for the (vi)Rep°r to providers,the
tui ortation;and Continuum of Care,and HUD;and
If public transportation options as sortive service jfacilities. (vii)Conducting training on using the
are not sufficient within the area,the Program funds may not be used for the system,including traveling to the
recipient may make a one-time payment maintenance and repair of horning
on behalf of a program participant where the costs of maintaining and (3)If the recipient or subrecapient.is
needing car repairs or maintenance repairingthe housing are included in a victim services provider,or a legal
required to operate a personal vehicle, the lease. • services provider,it may use Continuum
subject to the following. of Care funds to establish and operate a
(A)Payments for car repairs or §578.57 Homeless Management • comparable database that complies with
maintenance on behalf of the program Information System. HUD's HMIS requirements.
participant may not exceed 10 percent (a)Eligible costs.(1)The recipient or (b)General restrictions.Activities
of the Blue Book value of the vehicle subrecipient may use Continuum of funded under this section must comply
(Blue Book refers to the guidebook that Care program funds to pay the costs of with the HMIS requirements.
compiles and quotes prices for new and contributing data to the HMIS § administrative578"59 Project costs.
used automobiles and other vehicles of designated by the Continuum of Care,
all makes,models,and types); including the costs of (a)Eligible costs.The recipient or
(B)Payments for car repairs or (I)Pchasing or teasing computer subrecipient may use up to 10 percent
maintenance must be paid by the hardware; of any grant awarded under this part,
recipient or subrecipient directly to the (ii)Purchasing software or software excluding the amount for Continuum of
third party that repairs or maintains the licenses; Care Phi:ming Activities and UFA costs,
car and (ffi)licenses_ or leasing equipment, for the payment of project
(C)The recipients or subrecipients including telephones,fax xuaachinas,and administrative costs related to the
may require program participants to furniture; planning and execution of Continuum
Federal Register/Vol. 77, No. 147/Tuesday, July 31, 2012/Rules and Regulations 45457
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comprehensive outreach plan,including subpart D of this part,except that HPCs of structure)of the International Code
specific steps for identifying homeless may use such match for the costs of Council.
persons and referring them to activities that are el;athle under (2)Services provided with assistance
appropriate housing and services in that §578.71. under this part must be provided in
geographic area. (b)Cash sources.A : •lent or compliance with all applicable State
(ii)Renewing HPC status.If the subrecipient may use i).,. from any and local requirements,including
Continuum was designated an HPC in source,including any other federal licensing requirements.
the previous federal fiscal year and used sources(excluding Continuum of Care •(b)Housing quality standards.
Continuum of Care grant finds far program funds);as well as State,local, Housing leased with Continuum of Care
activities described under§578.71,that and private sources,provided that funds Program funds,or for which rental
such activities were effective at from the source are not statutorily assistance payments are made with
reducing the number of individuals and prohibited to be used as a match.The Continium of Care program funds,must
families who became homeless in that recipient:must ensure that any funds meet the applicable housing quality
community. used to satisfy the matching standards(HQS)under 24 CFR 982.401
§57t3 67 Publication of application. requirements of this section are eligible of this title,except that 24 CFR .
HUH will will publish the application to under.the laws governing the funds in 982.401(j).applies only to housing
be designatedd Publish the the HUD order to be used as matching funds for occupied by program participants
Web for public comment as e.t a awarded imam this . receiving tenant-based rental assistance.
Webt site,the Continuum csomment
as (c)In�d contributions: 1 For housing rehabilitated with funds
whe nt nunPC meets the recipient or subrecipient may use the under this part,the lead-based paint
designationg f as being one. value of any real property,equipment requirements in 24 CFR part 35,
stangoods,or services contributed to the subparts A,B,J,and R apply.For
§578.69 Cooperation among entities, project as match,provided that if the housing that receives project-based or
An HPC must cooperate with HUD in recipient or subrecipient had to pay for sponsor-based rental assistance,24 CFR
dist:buiting information about.its them with grant funds,the costs would part 35,subparts A,B,H,and R apply.
successful efforts to reduce have been eligible under Subpart D,;or, For residential property for which funds
homelessness. in the case of HPCs,eligible under under this part are used for acquisition,
§578.71. leasing,services,or operating costs,24
§578.71 HPC-etig8de arm. (2)The requirements of 24 CFR 84.23 CFR part 35,subparts A,B;K,and R
In addition to using grant funds for and 85.24.apply. 1 .
the eligible costs described in subpart D (3)Before_ grant execution,services to ap(1)Bef re any assistance will be •
of this part,recipients and subrecipients be provided by a third party must be provided on behalf of a program
in Continuums of Care designated as documented by a memorandum of participant,the recipient,or
HPCs may also use grant funds to understanding(MOU)between the subrecipient,must physically inspect
provide housing relocation and recipient or Subrecipient and the third each unit to assure that the unit meets
stabilization services and short-and/or party that will provide the services. HQS.As istance will not be provided
medium-term rental assistance to Services provided by individuals must for units that fail to meet HQS,unless
individuals and families at risk of be valued at rates consistent with those the owner corrects any deficiencies
homelessness as set firth in 24 CFR ordinarily paid for similar work in the_ within 30 days from the date of the
576.103 and 24 CFR 576.104,if recipient's or subrecipient's - ' initial inspection ad the recipient or
necessary to prevent the individual or organization.If the recipient or subrecipient verifies that all deficiencies
family from becoming homeless. subrecipient does not have employees have been corrected.
Activities must be carried out in performing similar work,the rates must (2)Recipients or subrecipients must
accordance with the plan submitted in he consistent with those ordinarily paid inspect all units at least annually during
the application.When carrying out by other employers for similar work in the grant period to ensure that the units
housing relocation and stabilization the same labor market continue to meet HQS.
services and short-and/or medium-term (i)The MOU must establish the (c)Suitable dwelling size.The
rental assistance,the written'standards unconditional commitment except for . dwelling unit must have at least one
set forth in§578.7(a)(9)(v)and selection to receive a grant,by the third bedroom or living/sleeping room for
recordkeeping requirements.of 24 CFR party to provide the services,the each tw o pparsons.
576.500 apply. specific service to be provided,the (1)Children of oppsite other
profession of the persons providing the than very young children,may not be
Subpart F—Program Requirements service,and the hourly cost of the required to occupy the same bedroom or
§578.73 IVlatdting r� service to be provided. hving/sleepi'ng room.
(ii)Daring the term of the grant,the (2)If household composition changes
(a)In general.The recipient or recipient or subrecipient must keep and during the term of assistance,recipients
subrecipient must match all grant funds, make available,for inspection,records and subrecipients may relocate the .
except for leasing funds,with-na less documenting the service hours household to a more appropriately sized
than 25 percent of fonds or in-kind provided. • unit The household must still have
contributions from other sources.For access to appropriate supportive
Continuum of Care geographic areas in §MThGeneral operations. services. .
which there is more than one grant (a)State and local requirements.(1) (d)Meals.Each recipient and
agreement,the 25 percent match must Housing and facilities constructed or subrecipient of assistance under this
be provided on a grant-by-grant basis. rehabilitated with assistance under this ' part who provides supportive hanging
Recipients that are UFAs or are the sole part must meet State or local building for homeless persons with disabilities
recipient for their Continuum,may- codes,and in the absence of State or must provide meals or meal preparation
provide match on a Continuum-wide local bending codes,the International facilities for residents.
basis.Cash match must be used for the Residential Code or International (e)Ongoing assessment of supportive
costs of activities that are eligible under Building Code(as applicable to the type services.To the extent practicable,each
' Federal Register/Vol. 77, No. 147/Tuesday, July 31, 2012/Rules and Regulations 45459
t• a
individuals and families,must be in individuals and families at risk of relocation,including the cost of moving
writing,and must include an homelessness. to and from the temporarily occupied
explanation of why the project is no •��§ and housing and any increase in��y
longer needed to provide transitional orDia rent/occupancy utility
permanent housing or supportive a lLtinimi9in� costs;and
services.The primary factor in HUD s ( ) sPja (ii)Appropriateadvisory services,
decision on the proposed conversion is Consistent with the other goals and including reasonable advance written
the unmet need for transitional or objectives of this part,recipients and notice of
permanent housing or supportive subreci tents must ensure that they (A)The date and approximate
have t all reasonable steps
services in the Continuum of Care's duration of the temporary relocation;
gooQ�P�c area. minimize the displacement of persons (B)The location of the suitable,
(c l?epayment of gracrt funds.If a (des,individuals,businesses, decent,safe,and sanitary dwelling to be
Project is not operated as transitional or nonprofit organizations,and farms)as a made available for the temporary
permanent housing for 10 result of projects assisted under this pario�
following the date.of initial occupancy, Part"Project,"as used in this section, (C)The arable terms and
HUD will require repayment ofthe means any activity or series of activities conditions under which the program
entire amount of the grant used for assisted with Continuum.of Care funds phase of in a receivedparticipant will be able to o a
or anticipatedny c py
acquisition,rehabilitation,or newsuitable,decent,safe,and sanitary
construction,unless conversion of the an undertaking' dwelling in the building or complex
•
project
Ob, (1)Temporary relocation. Existing pcoject;and
project has been authorized under ��g Not Assisted under Titre IV of upon completion of the
homing is used(b) tide section.purposes Ioshe the Mclllnney-Vento Act.No tenant maymo
(D)The provisions of paragraph
pore tl is for such for be required to relocate temporarily for a (b)(2)(i)of this section.
amouthan will ye ed,the payment project if the building in which the (c)Relocation assistance for displaced
amount be refaced by 20 project is being undertaken or will be persons.(1)In general.A displaced
the10-yepercentage points for each year,beyond undertaken is.not currently assisted Person(defined in paragraph(c)(2)of
used
ansod in which the project under Mile IV of the McKinney-Vento section)must be provided
is used for transitional or permanent Act The absence of such assistance to relocation assistance in accordance-with
hdthe building means the rename are not the requirements of the URA and
(d)Prevention of undue penefrap homeless and the tenants are therefore implementing regulations at 49 CFR part
Except asa tion,uponeo anyr paragraph(e) 24.Adisplaced person must be advised
of this section, sale or other not eligible to receive assistance under
disposition of a ect te that received the Continuum of Care program.When of his or her rights under the Fair
granproject a tenant moves for such a project under Housing Act.Whenever possible,
rehabilitation,funds n,fo r acquisition, conditions that cause the Uniform minority Persons must be given.
ig before the 15 ye construction, Relocation Assistance and Real Property reasonable opportunities to relocate to
occurringpient pg the comply with
period,the Acquisition Polides Act of 1970(URA), decent,safe,and sanitary replacement
-recipient must with such twins ,not located in an area of
and conditions as HUD may prescribe to 42 U.S.C.4601-4655,to apply,the mom that are ofthin
prevent the recipient or subreci lent tenant must be treated as permanently
minority p glair financial means.This policy,
from undulbenefiting from such sale displaced and offered relocation F cy,
..r assistance and payments consistent with however,does not require providing a
or disposition.
(e)Ssceptiwi A recipient or paragraph(2) �fTransitionalHanging or necessary�enaable payment rson to relocate
compl than is
• y will not s d toProjects Assisted to a comparable replacement dwelling.
comply with the terms and conditions Permanent Housing I
•
rescrbed under paragraphs(c)and(d) Under Title IV of the McKinney Vento See 49 CFR 24.205(c)(2)(ii)(D).
F Act.Consistent with paragraph(c)(2)(ii). (2)Displaced person.(i)For the
of this section ittof this section,no programparticipant purposes of paragraph(c)of this section,
(i}The used or the project of the berequired rreloptemporarilythe term"displaced person"means any ,
property used for the results in. �Y
the use of the property for the direct for a project if the person cannot be person(family,individual,business,
benefit of very low-income persons; offered a decent,safe,and sanitary unit nonprofit organization,or farm)that
(2)All the proceeds are used to in the same building or complex upon moves real moves
provide transitional or permanent project completion under reasonable personalproperty from real property,
housing that meet the requirements of terms and conditions.The length of penman rntly,.as a direct result of
this art; . occupancy requirements in§578.79 acquisition,rehabilitation,or
(3)Project-based rental assistance or may prevent a program participant from de nnlition for a project This includes
operating cost assistance from any returning to the property upon any permanent,involuntary move for a
federal program qr an equivalent State completion(See paragraph(c)(2)(f)(D) project,including any permanent move
or local program is no longer made of this section).Any program from the real property that is made:
available and the project is meeting participant who has been temporarily (A)After the owner(or person in
applicable performance standards, relocated for a period beyond one year control of the site)issues a notice to
provided that the portion of the project must be treated as permanently move permanently from the property,or
that had benefitted from such assistance displaced and offered relocation refuses to renew an expiring lease,if the
continues to meet the tenant income assistance cc
ance and payments consistent with move ours after the date of the
and rent restrictions for low-income paragraph.(c)'of this section.Program submission by the recipient or
units under section 42(g)of the Internal participants temporarily relocated in subrecipient of an application for
Revenue Code of 1986;or accordance with the policies described assistance to HUD(or the recipient,as
(4)There are no individuals and in this paragraph mast be provided: applicable)that is later approved and
families in the Continuum of Care (i)Reimbursement for ail reasonable funded and the recipient or subrecipient
geographic area who are homeless,in out-of-pocket expenses incurred in has site control as evidenced in
which case the project may serve connection with the temporary accordance with§578.25(b);or
Federal Register/Vol. 77, No. 147/Tuesday, July 31, 2012/Rules and Regulations 45461
•
(2)Distribute the appropriate portion funds as provided under the regulations be used for the acquisition,
of the funds to a subrecipient no later of this part without impairing its construction,or rehabilitation of
than 45 days after receiving an independence,autonomy,expression of structures only to the extent that those
approvable request for such distribution religious beliefs,or religious character. structures are used for conducting
from the subrecipient;and Such organization will retain its eligible activities under this part.When
(3)Draw down funds at least once per independence from federal,State,and a structure is used for both eligible and
quarter of the program year,after local government,and may continue to explicitly religious activities,program
eligible activities commence: carry out its mission,including the funds may not exceed the cost of those
§518.87 Limitation use a�fiatds. definition,development,practice,and portions of the acquisition,new
expression of its religious beliefs, construction,or rehabilitation that are
(a)Main tenance of effort.No provided that it does not use direct attributable to eligible activities in
assistance provided under this part(or program funds to support or engage in accordance with the cost accounting
any State or local government funds any explicitly religious activities, . requirements applicable to the
used to supplement this assistance)may inclutling activities that involve overt Continuum of Care program.
be used to replace State or local funds religious content,such as worship, Sanctuaries,chapels,or other rooms
previously used,or designated for use, religious instruction,or proselytixation, that a Continuum of Care program-
to assist homeless persons. or any manner prohibited by law. funded:religious congregation uses as its
(b)Faith-based activities.(i)Squat Among other things,feith.based principal place of worship,however,are.
treatment of pmgmm participants and moons may use space in their inali@'hls for Continuum of Care
program beneficiaries.(i)Program facilities to provide program-funded •program-funded improvements.
participants.Organizations that are services,without removing or altering Disposition of real after the
religious or faith-based are eligible,on religious art,`icons,scriptures,or other tem of the
the same basis as anyother � grant,or any change in the
religious symbols.In addition,a use of the property during the term of
organization,to participate in the Continuum of Care program-funded the grant,is subjectto governmentwide
Continuum of Care program.Neither the religious organization retains its
reFederal Government nor a State or local governing PToP 9
funds under the authority
over its internal governance, disposition(see 24 CFR parts 84 and
governmentreceivingand it may retain religious terms in its 85).
Continuum of Care program shall organitition's name,select its board (6)Supplemental funds.If a State or
discriminate against an or nisation on members on a religious basis,and local government voluntarily
the basis of the orgenization's religious include religious references in its contributes its own funds to supplement
character.or Affliatinn,Recipients and organizatiOn's mission statements and federally funded activities,the State or
subrecipients of program funds shall othergoverning documents. local government has the option to
not,in providing program assistance, (4)Alternative provider.If a program segregate the federal funds or
discriminate against a program participant or prospective program commingle them.However,lithe funds
ant or prospective program participant of the Continuum of Care are commingled,this section applies to
participant on the basis of religion or � program supported by HUD objects to all of the commingled funds. •
religious belief. . the religious character of an [c)Restriction on combining funds.In
(h)Beneficiaries.In providing organization that provides services a single Structure or housing unit,the
services supported in whole or in part sander the program,that organization following types of assistance may not be
with federal financial assistance,and in shall,within a reasonably prompt time combined:
their outreach activities related to such after the objection,undertake reasonable (11 I,easim,and acquisition,
services,program participants shall not efforts to identify and refer the program rehabilitation,or new construction;
discriminate against current or participant to an alternative provider to (2)Tm .m based rental assistance and
prospective program beneficiaries on which the prospective programacquisition,rehabilitation,or new
the basis of religion,a religious belief, participant has no objection.Except for construction;
a refusal to hold a religious belief,or a services provided by telephone,the (3)Short or medium term rental
refusal to attend or participate in a Internet,or similar means,the referral assistance and acquisition,
practi e.. must be to an alternate provider in rehabilitation,or new construction;
(2.Separation of explicitly religious reasonable geographic proximity to the (4)Rental assistance and leasing;or
activities.Recipients and subrecipients organization making the•refecral.In (5)Rental assistance and operating.
of Continuum of Care funds that engage making the referral,the organization (d)Progmm fries.Recipients and
in explicitly religious activities, shall comply with applicable privacy subrecipients may not charge program
including activities that involve overt laws and regulations.Recipients and participants program fees.
religions content such as worship, subrecipients shall document any
religious instruction,or proselytization, objections from program participants §578.89 Limitation on use of grant funds
must perform such activities and offer and prospective program participants to Bence PerS0118 defined as homeless
such services outside of programs that and any efforts to refer such participants railer other federal '
are supported with federal financial to alternative providers in accordance (a)Application requirement.
• assistance separately,in time or with the requirements of- Applicants that intend to serve
location,from the programs or.services §578.103(a)(13).Recipients shall ensure unaccompanied youth and families with
funded under this part,and that all subrecipient agreements make children and youth defined as homeless
participation in any such explicitly organizations receiving program funds under other federal laws in paragraph
religious activities must be voluntary for aware of these requirements. (3)of the homeless definition in§576.2
the program beneficiaries of the HUD- . (5)Structures.Program funds may not must demonstrate in their application,
funded programs or services. be used for the acquisition, to HUD's satisfaction,that the use of
(3)Religious identity A faith-based construction,or rehabilitation of grant funds to serve such persons is an
won that is a recipient or structures to the extent that those equal or greater priority than serving
subrecipient of Continuum of Care structures are used for explicitly persons defined as homeless under
program funds is eligible to use such religious activities.Program funds may paragraphs(i),(2),and(4)of the
1.4 Federal Register/Vol. 77, No. 147/Tuesday, July 31, 2012/Rules and Regulations 45463
84.42(for private nonprofit the criteria in paragraph(d)(2)(ii)of this the same interests or benefits as are
organizations). section,provided that the recipient has being made available or provided to the
. (b)Continuum of Care board satisfactorily met the threshold. group or class;and
members.No Continuum of Care board requirements of paragraph(d)(2)(ii)of (G)Any other relevant considerations.
member may participate in or influence this section.
discussions or resulting decisions (i)Threshold requirements.HUD will §'�97 ram�" '
concerning the award of a grant or other consider an exception only after the (a, �
mod•Progzamincome is the
financial benefits to the organization recipient has provided the following income received by the recipient or
that the member represents. documentation: subrecipient directly generated by a
(c)Organisational conflict.An (A)Disclosure of the nature of the -suPP° activity,
organizational conflict of interest.arises conflict,accompanied by a written (b)Use.Program income earned
when,because of activities or assurance,if the recipient is a during the grant term shall be retained
relationships with other persons or government,that there has been public. by the recipient,and added to fonds
organizations,the recipient or disclosure of the conflict and a mmitfwdto the project by HUD and
subrecipient is unable or potentially description of howthe public disclosure the recipient,° for eligible activities
unable to render impartial assistance in was made;and if the recipient is a in accordance the requirements of
the provision of any type or amount of private nonprofit organization,that the this part Casts incident to the
assistance under this part,or when a conflict has been disclosed in generation of program income maybe
covered person's,as in paragraph(d)(1) accordance with their written code of deducted from gross income to calculate
of this section,objectivity in Performing conduct or other conflict-of-interest program income,provided that the costs
work with to anyactivityhave not been charged o.grani funds.
assisted under this part is or mght be policy;
An opinion of the recipient's (c)Rent and occupancy charges.
otherwise ire d.Such an attorney that the interest for which the Rents and occupancy charges collected
organizati conflict would arise • exception is sought would not violate from�° participants are.program
when a board member of an applicant State or local law,or if the subrecipient income.In addition;rents and
participates in decision of the applicant is a private nonprofit organization,the rescietp ncy charges collected from
concerning the award of a grant,or exception would not violate the residents of transitional housing maybe
provision of other financial benefits,to on's internal pol;c. reserved,in whole or in part,to assist
the organization that such member Di)Factors to be considered for he residents from whom they are t
represents.It would also arise when an exceptions.In determining whether to collected to move to permanent
ho
employee of a recipient or subrecipient grant a requested exception after the .
participates in malting rent recipient has satisfactorily met the §578.99 Apppe ►of other federal
reasonableness determinations under threshold requirements wider paragraph requirement&
§578.49(b)(2)and§578.51(g)and (c)(3)(i)of this section,HUD must In addition to the requirements set
• housing quality inspections of property conclude that the exception will serve forth in 24 CFR part 5,use of assistance
under§578.75(b)that the recipient, to farther the purposes of the provided under this part must comply
subrecipient,or related entity owns. Continuum of Care program and the with the following federal requirements:
(d)Other conflicts.For all other effective and efficient administration of (a)Environmental review.Activities
transactions and activities,the following the recipient's or subrecipient's project, under this part are subject to
restrictions apply: ^, into account the cumulative environmental review by HUD under 24
(1)No covered person,meaning a effect of the following factors,as CFR part 50 as noted in§578.31. •
person who is an employee,agent, applicable: (b)Section 6002 of the Solid Waste
consultant,officer,or elected or (A)Whether the exception would Disposal Act.State agencies and
appointed official of the recipient or its provide a significant cost benefit or an agencies of a political subdivision of a
subrecipients and who exercises or has essnl degree of expertise to the state that are using assistance under this -
exercised any functions or 1 program or project that would otherwise part for procurement,and any person
responsibilities with respect to activities not be available; contracting with such an agency with
assisted under this part,or who is in a (B)Whether an opportunity was respect to work performed under an
. position to participate in a decision- provided for open competitive bidding assisted contract,must comply with the
making process or gain inside or ; requirements of Section 6003 of the
information with regard to activities (C)Whether the affected person has Solid Wade-Disposal Act,as amended
assisted under this part,may obtain a withdrawn from his or her functions; by the Resource Conservation and
financial interest or benefit from an responsibilities,or the decision-making Recovery Act In accordance with
assisted activity,have a financial . process with respect to the.specific Section 6002,these agencies and
interest in any contract,subcontract,or activity in • persons must:
agreement with respect to an assisted (D)Wh er the interest or benefit (1)Produ re items designated in
activity,or have a financial interest in was present before the affected person guidelines of the Environmental
the proceeds derived from an assisted was in the position described in Protection Agency(EPA)at 40 CFR part
activity,either for him or herself or for P am pph(c)(i)of this section; 247 that contain the highest percentage
those with whom hear she has ( Whetter undue hardship will of recovered ml'erials practicable,
immediate family or business ties, result to the recipient,"the subrecipient, consistent with maintaining a
during his or her tenure or during the or the person affected,when weighed satisfactory level of competition,where
one-year period following his or her against the public interest served by the purchase price of the item exceeds
tenure. avoidingthe prohibited conflict $10,000 or the value of the quantity
(2)Exceptions.Upon the written ' (F)Whether the person affected is a acquired in the preceding fiscal year
request of the recipient HUD may grant member of a group or class of persons exceeded$10,000;
an exception to the provisions of this intended to be the beneficiaries of the (2)Procure solid waste management
section an a case-by-case basis,taking assisted activity,and the exception will services in a manner that maximizes
into account the cumulative effects Of permit such person to receive generally energy and resource recovery;and
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Federal Register/Vol. 77, No. 147/Tuesday, July 31, 2012/Rules:and Regulations 45465
program participant to whom the subrecipient must keep records for each must maintain copies of their marketing,
violence.occurred or by the head of program participant that document outreach,and other materials used to
household. (ii The services and assistance inform eligible persons of the program .
(ii)Documentation of the reasonable provided to that program participant, to document compliance with the
belief of imminent threat of further including evidence that the recipient or in§578.93(c).
domestic violanre,dating violence,or subrecipient has conducted an annual 15)Other fedeml requimments.The
sexual assault or stalking,which would assessment of services for those program recipient and its subrecipients must
include threats from a third.party,such participants that remain in the program document their compliance with the
as a friend or family member of the for more than a year and adjusted the federal requirements in§578.99,as
perpetrator of the violence.This maybe service package accordingly,and applicable.
written observation by the housing or including case management services as (16)Subr3cipierds and contractors.(i)
• service provider,a letter or other provided hi§578.37(a)(1)(W(F);and The recipient must retain copies of all.
documentation from a victim service (ii)Where applicable,compliance solicitations of and agreements with •
provider,social worker,legal assistance with the termination of assistance subrecipients,records of all payment
provider,pastoral counselor,mental t in§578.91. requests by and dates of payments made
health provider,or other professional till Housing standards.The recipient to subrecipients,and documentation of
from whom the victim has sought or subrecipient must retain all monitoring aid sanctions of
assistance;current restraining order; documentation of compliance with the subnemprents,as applicable.
recent court order or other court housing standards in§578.75(b), (ii)The recipient must retain
records;law enforcement report or including inspection reports. documentation of monitoring
records;communication retards from (9)Services provided.The recipient'or subrecipients,including any monitoring
the perpetrator of the violence or family subrecipient must document the types findings and corrective actions required,
members or friends of the perpetrator of of supportive services provided under (ui)The recipient and-its
the violence,including emails, the recipient's program and the amounts subtecipients must retain copies of all
spent on those services.The recipient or procurement contracts and
voicemails,text messages,and social
media posts;or a written certification by subrecipient must keep record that these documentation of compliance with the
the program participant to whom the records were reviewed at least annually procurement requirements in 24 CFR
violence occurred or the head of and that the service package offered to 85.36 and 24 CFR part 84.
household. ' program participants was adjusted as (17)Other records specified byllUD.
necessary. •The recipient and sabrecipieats must
(6)Annual income.For each program
participant who housing (10)Match.The recipient must keep other records specified by HUD.
participant
where receivesreei or an occupancy records of the source and use of • (b Co deatiality.In addition to
assischarge iss paid be the program contributions made to satisfy the match meetingthe specific confidentiality and
participant,the recipient or subrecipient mustindicate trequirement inhe 7grant and fiscal year the 8.73.The records �recipient�subrecipientss for HMIS must
must•keep the following documentation for which each mAtrhing contribution is develop and implement written
of annual income: counted.The records�must show how procedures to ensure: •
(i)Income evaluation form specified the value placed on third party in-kind (1)All records containing protected
by HUD and completed by the recipient contributions was derived.To the extent identifying information of any
or subreccpient;and feasible,volunteer services must be individual or family*ho applies for
(ii)Source documents(eg.,most supported by the same methods that the and/or receives Continuum of Care
recent wage statement,unemployment organization uses to support the assistance will be kept secure and
compensation statement, he benefits allocation of regular personnel costs. confidential;
statement,bank statement)for the assets •(11)Conflicts of interest.The (2)The address or location of any
held by the program participant and recipient and its subrecipients must family violence project assisted with
income received before.the date of the keep records to show compliance with Continuum of Care funds will not be
evaluation; the urganizational conflict-of-interest made public,except with written
(iii)To the extent that source requirements in§578:95(c),the authorization of the person responsible
documents are unobtainable,a written Continuum of Care board conflict-of- for the-operation of the project;and
statement by the relevant third party interest requirements in§578.95(b),the (3)The address or location of any
(e.g.,employer,government benefits other conflict requirements in housing of a program participant will
administrator)or the written §578.95(d),a copy of the personal not be made public,except as provided
certification by the recipient's or conflict-of-interest policy developed under a preexisting privacy policy of the
subrecipient's intake staff of the oral and implemented to comply with the recipient or subrecipient and Consistent
verification by the relevant third party requirements in§578.95,and records with State and local laws regarding
of the income the program participant supporting exceptions to the personal privacy and obligations of
received over the most recent period;or ccmflict-of-interest prohibitions. confidentiality;
(iv)To the extent that source (12)Homeless participation.The (c)Period of record retention.All
documents and third-party verification recipient or subrecipient must records pertaining to Continuum of Care
are unobtainable,the written document its compliance with the funds must be retained for the greater of
certification by the program participant homeless participation requirements 5 years or the period specified below.
of the amount of income that the under§578.75(g). Copies made by microfilming,
program participant is reasonably (13)Faith-based activities.The photocopying,or similar methods may
expected to receive over the 3-month recipient and its subrecipients must be substituted for the original records.
period following the evaluation. document their compliance with the (1)Documentation of each program
(7)Program participant records.In faith-based activities requirements participant's qualification as a family or
addition to evidence of"homeless" under§578.87(b). individual at risk of homelessness or as
status or"at-risk-of-homelessness" (14)AffirmativielyFurthering Fair a homeless family or individual and
status,as applicable,the recipient or Housing.Recipients and subrecipients other program participant records must
Federal /Vol. 77, No. 147/Tuesday, July 31, 2012/Rules and Regulations 45467
subrecipients or returning funds to other funded activities cannot (1)Identification of any closeout costs
HUD;and reasonably be expected to be expended or contingent liabilities subject to
(vii) matching contributions for eligible costs dining the payment with Continuum Of Care
Making 0 mwg remaining
before or as draws are made from the term of the grant program funds after the closeout
recipient's grant (3)If the actual total cost of agreement is signed;
(2)HUD may change the method of acquisition,rehabilitation,or new (2)Identification of any unused grant
payment to a reimbursement basis. construction for a project is less than the funds to be deobligated by HUD;
(3)HUD may suspend payments to total cost agreed to in the grant (3)Identification of any program
the extent HUD determines necessary toagreement;. income on deposit in financial
Preclude, the hn ther expenditure of (4)If the actual annual leasing costs, institutions.at the time the closeout
funds ur affected activities or projects. operating costs,supportive services agreement is signed;
(4)HUD may continue the grant with costs,rental assistance costs,or HMS (4)Description of the recipient's
a substitute recipient ofHUD's costs are less than the total cost agreed responsibility after closeout for:
choosing. to in the grant agreement for a one-year (i)Compliance with all
(5 ]may deny matching credit for P program
all or part of the cost of the affected peod' requirements in using program income
activities and regtrire the recipient to (5)Program participants have not on deposit-at the tire the closeout
make further�trhing conlydnitioas to moved into units within 3 months of the agreement is signed and in ming any
makeup'for the contribution time that the units are available for other remaining Continuum of Care
determined to be ineligible. occupancy;and program funds available for closeout
(8)HUD may require the recipient.to (8)The grant agreement may set forth costs and contingent liabilities;
reimburse the recipient's line of credit in detail other circumstances under (ii)Use of real property assisted with
in an amount equal to the funds used for which fonds maybe deobligated and Continuum of.Care program funds in
the affected activities. other sanctions maybe imposed. accordance with the terms of
(7)HUD may reduce or terminate the g 575,1m Closeout commitment and principles;
remaining grant of a recipient. (iii)Use of personal property
(8)HUD may condition a future grant (a)In general Grants will be closed purchased with Continuum of Care
(9)HUD may take other remedies that out in accordance with the requirements program funds;and
are ley available. of 24 CFR parts 84 and 85,and closeout (iv)Compliance with requirements
(c)Recipient sanctions.If the procedures established by HUD. governing program income received
recipient determines that a subrecipient (b)Reports.Applicants must submit subsequent to grant closeout
is not complying with a program all reportsrequired by HUD no later (5)Other provisions appropriate to
requirement or its sabrecipient than 90 days from the date of the end any special circumstances of the grant
agreement,the recipient must take one of the project's grant term. closes,in modification of or in
of the actions listed in paragraphs(a) (c)Closeout agreement.Any addition to the obligations in paragraphs
and(b)of this section. ohi;gtinns remaining as of the date of (c)(1)through(4)of this section.
(d)Deoblggaiion.HUD may deobligate the closeout must be covered by the
funds for the following reasons: terms of a closeout agreement The Dated:June 26,2012.
(1)If the timeliness standards in agreement will be prepared by HUD in Maik Johnston,
§578.85 are not met .."Aonsultation with the recipient The Assistant Secretory for CommunityPlanning
(2)If HUD determines that delays agreement must identify the grant being and Development(Acting).
completing construction activities for a closed out,and include provisions with Doc.2012-17546 Filed 7-30-12;8:45 am)
project will mean that the funds for respect to the following: BILLING coon 421047-r
Exhibit C
Scope of Work
1. Administer the"Rental Assistance for the Chronically Homeless"Program in accord with
Continuum of Care program regulations 24 CFR §578 (Exhibit B);
2. Work closely with Community Alliance so as to provide rental assistance to chronically homeless
individuals with special emphasis on those individuals with a serious mental illness, a chronic
substance abuse disorder, or both;
3. Monitor the value of Community Alliance match services and report on match to the City of
Omaha at least quarterly until the match requirement is met--total match requirement:
$45,154.00 (match services can include outreach, case management, psychiatric assessment,
diagnosis and treatment, psychiatric medications, day rehabilitation, vocational services,
community support services and assertive community treatment services);
4. Monitor and report the progress of the project to the City of Omaha on a monthly basis(this
report consists of the names of those served in the past thirty days, the amount of rental
assistance, their gender, race, ethnicity and disability);
5. Submit monthly Reimbursement Requests to the City of Omaha listing each expenditure by check
number, payee, date and amount;
6. Maintain records and accounts related to this project for five years from the contract period
completion date;
7. Submit proposed changes to policies affecting the project to the Metro Area Continuum of Care
for the Homeless Board of Directors and Community Alliance for consideration and approval.
This requirement has been approved by HUD and serves in place of the requirement that OHA
have a homeless or formerly homeless individual on its board of directors;
8. Continuum of Care Requirements: regularly and reliably attend Metro Area Continuum of Care
for the Homeless (MACCH) monthly meetings, ensure that all program information is listed in
the MACCH Directory, participate in the MACCH client feedback process, install and implement
the CoC's HMIS, participate in the MACCH point-in-time housing count, and utilize the
centralized or coordinated assessment system established by the Continuum of Care as required
by §578.7(a)(8); and
9. Provide information, such as data and reports, as required by the City of Omaha and HUD.
e., fl' /?` fJ
Applicant: City of Omaha NE0039C7D011001
Project: City of Omaha NE0039L7D011405
71. Summary Budget
Instructions:
Data can only be entered under the Adjustment column. Data under the Renewal Submission
column populates from the project application. Data under the HUD Award column populates
from the HUD conditional award.The total requested amount for this summary budget cannot be
adjusted during the resolution of issues and conditions.
The system populates a summary budget based on the information entered into each
preceding budget screen. Review the data in each preceding screen and, if necessary, in both
the HUD Conditional Award Summary and the Project Application accessed through the
"Reference Submissions", and return to the screens to correct any inaccurate information. All
fields are read only with exception to field "8.Admin (Up to 10%)."
Admin (Up to 10%):This value cannot be increased above the amount that appears under the
HUD Award column. It can however be reduced. The grant will not fund greater than 10%of the
request listed in the field"Sub-Total Eligible Costs Request." Additionally, HUD will not fund
greater than 7%of the request listed in the field, "Sub-Total Eligible Costs Requested,"if the
CoC received bonus points in the FY 2013 CoC Program competition for submitting all CoC
projects at or below 7%. If an amount above 10%is entered,the system will report an error and
prevent application submission when the screen is saved.
Total Assistance plus Admin Requested: This field is automatically populated based on the
amount of funds requested on the various budgets completed by the project applicant and
Admin costs requested. This is this is the total amount of funding the project applicant will
request in the FY 2013 CoC Program Competition. Cash Match:This field is automatically
populated based on the amount of Cash Match entered on Screen 7H.Sources of
Match/Leverage.
In-Kind Match:This field is automatically populated based on the amount of In-Kind Match
entered on Screen 7H.Sources of Match/Leverage.
Total Match:This field will automatically calculate the total combined value of the Cash and In-
Kind Match. The total match must equal 25% of the request listed in the field "Total Eligible
Costs Request"minus the amount requested for Leased Units and Leased Structures. There is
no upper limit for Match. If an ineligible amount is entered,the system will report an error and
prevent application submission. To correct an inadequate level of match, return to Screen"7H.
Sources of Match/Leverage"to make changes.
The Total Budget automatically calculates when you click the"Save"button.
Additional Resources:
https://www.hudexchange.info/e-snaps/guides/coc-program-competition-resources/
The following information summarizes the funding request for the total
term of the project. However,the appropriate amount of administrative
costs must be entered in the available fields below.
Eligible Costs Annual Annual Annual Grant Grant Grant Total Total Total Budget
Assistance Assistance Assistance Term Term Term Assistance Assistance Assistance Chang
Requested Requested Requested (Rene (HUD (Adjust Requested Requested Requested e
(Renewal (HUD (Adjustment) wal Award) ment) for Grant for Grant for Grant (Adjust
Submission) Award) Submi Term Term Term ment)
ssion) (Renewal (HUD (Adjustment)
Submission) Award)
1a.Leased Units
«a',; o
`� .a . . e . ,.�...0.:.
Applicant Renewal Issues and Conditions Page 57 07/31/2015
Applicant: City of Omaha NE0039C7D011001
Project: City of Omaha NE0039L7D011405
lb.Leased4. a �:� e t� z gal:
Structures
2.Rental Assistance . z g a
3.Supportive ` n t rr_ ea l
Servicesfri 1.
{
1
4.Operating a. o - 7
5.HMIS y ` ° ry ` 4. _ y x ?� 5 t,,
.v ri '"`a. .v-..��" s. . . iP.a a�� 4'^" hmk-� �L ,�y'
�j�- yak v��'�r " v
7.Admin
(Up to 10%) � � Mill0.1.;,,,„-,
9.Cash Match �' `=
- , te :::, ,
10.in-Kind Match
. � its
:3,-;;
Applicant Renewal Issues and Conditions Page 58 07/31/2015
EXHIBIT "E"
Use of Debarred, Suspended or Ineligible Contractors
Subject to CFR part 24, the Omaha Housing Authority, a subgrantee to the City of
Omaha, hereby certifies that all contractors, subcontractors and suppliers to be used in
the Continuum of Care Rental Assistance Program are eligible to participate in the
Continuum of Care Rental Assistance Program and that they are not on any debarred,
suspended or ineligible list.
COMPANY CERTIFICATION
Date: la,
Signature: cz 5
Typed Name and Title: Clifford Scott, Executive Director
Company: Omaha Housing Authority
r�NIL r//1 t / �-
OMB Guidance §200.501
5701-11, ("Travel and Subsistence Ex- Subpart F—Audit Requirements
penses; Mileage Allowances"), or by
the Administrator of General Services, GENERAL
or by the President (or his or her des-
ignee) pursuant to any provisions of §200•500 PurPase•
such subchapter must apply to travel This part sets forth standards for ob-
under Federal awards (48 CFR 31.205- taming consistency and uniformity
46(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 AUDITS
are unallowable except when such ac-
commodations would: §200.501 Audit requirements.
(i)Require circuitous routing; (a)Audit required..A non-Federal enti-
(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 say- that year in accordance with the provi-
inga;or sions of this part.
(v)Offer accommodations not reason- (b) Single audit. A non-Federal entity
ably adequate for the traveler's med- that expends $750,000 or more during
ical needs. The non-Federal entity the non-Federal entity's fiscal year in
Federal awards must have a single
must justify and document these condi-
tions on a case-by-case basis in order §200.5audit conducted in accordance with
for the use of first-class or business- elects to4 have of program-specificudit except when it
class airfare to be allowable in such ondu have acdcewithaudit
conducted in accordance with para-
cases. graph(c)of this section.
(2) Unless a pattern of avoidance is (c) 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 cus- gram (excluding 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
available in the specific case. may elect to have a program-specific
(e) Air travel by other than commercial audit conducted in accordance with
carrier. Costs of travel by non-Federal §200.507 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 (including personnel awards expended were received from
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- cy, or pass-through entity in the case
graph (d) of this section, is unallow of a subrecipient, approves in advance
a program-specific audit.
able.
(d)Exemption when Federal awards er-
§200.475 Trustees. pended are less than$750,000.A non-Fed-
eral entity that expends less than
Travel and subsistence costs of trust- $750,000 during the non-Federal entity's
ees(or directors)at IHEs and nonprofit fiscal year in Federal awards is exempt
organizations are allowable. See also from Federal audit requirements for
§200.474 Travel costs. that year, except as noted in §200.503
Relation to other audit requirements,
171
§200.502 2 CFR Ch. II(1-1-14 Edition)
but records must be available for re- sponsibility. Methods to ensure oomph-
view or audit by appropriate officials ance for Federal awards made to for-
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 $200.502 Basis for determining Fed-
FFRDC as a separate entity for pur- eral awards expended.
poses of this part. (a) Determining Federal awards ex-
(f) Subrecipients 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 subrecipient are 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
as a contractor are not Federal awards. the terms and conditions of Federal
Section §200.330 Subrecipient and con- awards, such as: expenditure/expense
tractor determinations should be con- transactions associated with awards in-
sidered in determining whether pay- eluding grants, cost-reimbursement
ments constitute a Federal award or a contracts under the FAR, compacts
payment for goods or services provided with Indian Tribes, cooperative agree-
as a contractor. ments, and direct appropriations; the
(g) Compliance responsibility for con- disbursement of funds to subrecipients;
tractors. In most cases, the auditee's the use of loan proceeds under loan and
compliance responsibility for contrac- 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-
mally do not pass through to contrac- riod when insurance is in force.
tors. However, the auditee is respon- (b) Loan and loan guarantees (loans).
sible for ensuring compliance for pro- Since the Federal government is at
curement transactions which are struc- 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 compli- except as noted in paragraphs (c) 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- ceived during the audit period;plus
elude determining whether these trans- (2) Beginning of the audit period bal-
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 compliance requirements;
(h) For-profit subrecipient. 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- (c) Loan and loan guarantees (loans)at
ments, as necessary, to ensure compli- IHEs. When loans are made to students
ance by for-profit subrecipients. The of an THE but the THE does not make
agreement with the for-profit sub- the loans, then only the value of loans
recipient should describe applicable made during 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
172
OMB Guidance §200.503
for previous audit periods is not in- §200.503 Relation to other audit re-
eluded as Federal awards expended be- quirements.
cause the lender accounts for the prior
balances. (a)An audit conducted in accordance
(d) Prior loan and loan with this part must be in lieu of any fi-
guarantees(loans). Loans, the proceeds of which nancial audit of Federal awards whicha non-Federal entity
were received and expended in prior is required to un-
years, are not considered Federal dergo under any other Federal statute
awards expended under this part when or regulation. 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
no continuing compliance require- statute or regulation,a Federal agency
ments other than to repay the loans. must rely upon and use that informa-
(e) Endowment funds. The cumulative tion.
balance of Federal awards for endow- (b)Notwithstanding subsection (a), a
ment funds that are federally re- Federal agency, Inspectors General, or
stricted are considered Federal awards GAO may conduct 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
eral awards expended and subject to agency must plan such audits to not be
audit under this part. duplicative of other audits of Federal
(g) Valuing non-cash assistance. Fed- awards. Prior to commencing such an
eral non-cash assistance, such as free audit, the Federal agency or pass-
rent, food commodities, donated prop- through entity must review the FAC
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 pass-
provided by the Federal agency. through entity's needs, the Federal
(h)Medicare. Medicare 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 under 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 reim- 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 Insur- and conditions of a cost-reimbursement
ance 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 addi-
pended. tional audits. A Federal agency that
173
§200.504 2 CFR Ch. II (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 cost of §200.505 Sanctions.
such additional audits. In cases 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 agency 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 §200.338 Remedies for non-
lieu of the Federal awarding agency compliance.
conducting or arranging for the addi-
tional audits. To allow for planning, §200.506 Audit costs.
such requests should be made at least See§200.425 Audit services.
180 calendar days prior to the end of
the fiscal year to be audited. The §200.507 Program-specific audits.
auditee, after consultation with its
auditor, should promptly respond to (a) Program-specific audit guide avail-
such a request by informing the Fed- able. In many cases, a program-specific
eral awarding agency 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 ping with the 2014 supplement includ-
as a major program. If the program is ing Federal awarding agency contact
to be audited as a major program based information and a Web site where a
upon this Federal awarding agency 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 when 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
sions of this paragraph for a sub- available. (1) When a program-specific
recipient. audit guide is not available, the
§200.b04 Frequency en of audits. auditee and auditor must have basi-
cally 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 b'y single audit.
this part must be performed annually. (2) The auditee must prepare the fi-
Any biennial audit must cover both nancial 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 constitu- 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 ings consistent with the requirements
part biennially. This requirement must of §200.511 Audit findings follow-up,
still be in effect 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:
174
OMB Guidance §200.507
(i) Perform an audit of the financial material effect on the Federal pro-
statement(s) for the Federal program gram;and
in accordance with GAGAS; (iv) A schedule of findings and ques-
(ii) Obtain an understanding of inter- tioned costs for the Federal program
nal 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(c)(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 up on prior audit findings, tor's report(s), or nine months after
perform procedures to assess the rea- the end of the audit period, unless a
sonableness of the summary schedule different period is specified in a pro-
of prior audit findings prepared by the gram-specific audit guide. Unless re-
auditee in accordance with the require- stricted by Federal law or regulation,
ments 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-
sents the status of any prior audit find- tected personally identifiable informa-
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) may be in data collection form prepared in ac-
the form of either combined or sepa- cordance with §200.512 Report submis-
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 report(s) 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
(i) 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- ment(s)of the Federal program,a sum-
sented 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 sec-
(ii) A report on internal control re- tion, and the auditor's report(s)" de-
lated to the Federal program, which scribed in paragraph (b)(4) of this sec-
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-specific audit, and one copy
eludes an opinion (or disclaimer of of this reporting package must be elec-
opinion) as to whether the auditee tronically submitted to the FAC.
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 ject to:
175
§200.508 2 CFR Ch. 1I (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); CFR part 42), as applicable. When pro-
(2) 200.504 Frequency of audits curing audit services, the objective is
through 200.506 Audit costs; to obtain high-quality audits. In re-
(3) 200.508 Auditee responsibilities questing proposals for audit services,
through 200.509 Auditor selection; the objectives and scope of the audit
(4)200.511 Audit findings follow-up; must be made clear and the non-Fed-
(5) 200.512 Report submission, para- eral 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. Factors to be con-
200.517 Audit documentation; sidered in evaluating each proposal for
(8)200.521 Management decision,and audit services include the responsive-
(9)Other referenced provisions of this ness to the request for proposal, rel-
part unless contrary to the provisions evant experience, availability of staff
of this section, a program-specific with professional qualifications and
audit guide, or program statutes and technical abilities, the results of peer
regulations. and external quality control reviews,
and price. Whenever possible, the
AUDITEES auditee must make positive efforts to
§2-00.608 Auditee responsibilities utilize small businesses, minority-
owned firms, and women's business en-
The auditee must: terprises, in procuring audit services as
(a) Procure or otherwise arrange for stated in §200.321 Contracting with
the audit required by this part in ac- small and minority businesses, wom-
cordance with §200.509 Auditor selec- en's business enterprises, and labor
tion, and ensure it is properly per- surplus area firms, or the FAR(48 CFR
formed and submitted when due in ac- part 42),as applicable.
cordance with §200.512 Report submis- (b) Restriction on auditor preparing in-
sion. direct cost proposals. An auditor who
(b) Prepare appropriate financial prepares the indirect cost proposal or
statements, including the schedule of cost allocation plan may not also be se-
expenditures of Federal awards in ac- lected to perform the audit required by
cordance with §200.510 Financial state- this part when the indirect costs recov-
ments. ered by the auditee during the prior
(c) Promptly follow up and take cor- year exceeded $1 million. This restric-
rective 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 cost allocation plan and
corrective action plan in accordance any subsequent years in which the re-
with §200.511 Audit findings follow-up, suiting indirect cost agreement or cost
paragraph (b) and §200.511 Audit find- allocation plan is used to recover costs.
ings follow-up, paragraph (c), respec- (c) 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 fully 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, cash 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
176
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
elude departments, agencies, and other in addition to including the total Fed-
organizational units that have separate eral awards expended for loan or loan
audits in accordance with §200.514 guarantee programs in the schedule.
Scope of audit, paragraph (a) and pre- (6) Include notes that describe that
pare separate financial statements. significant accounting policies used in
(b) Schedule of expenditures of Federal preparing the schedule, and note
awards. The auditee must also prepare whether or not the non-Federal entity
a schedule of expenditures of Federal elected to use the 10% de minimis cost
awards for the period covered by the rate as covered in §200.414 Indirect
auditee's financial statements which (F&A)costs.
must include the total Federal awards
expended as determined in accordance §200.511 Audit findings follow-up.
with §200.502 Basis for determining (a)General.The auditee is responsible
Federal awards expended. While not re- for follow-up 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
awarding agencies and pass-through a summary schedule of prior audit find-
entities to make the schedule easier to ings. The auditee must also prepare a
use. For example, when a Federal pro- corrective action plan for current year
gram has multiple Federal award audit findings. The summary schedule
years, the auditee may list the amount of prior audit findings and the correc-
of Federal awards expended for each tive 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 programs findings, paragraph (c). Since the sum-
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 programs, and provide the fig initially occurred. The corrective
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 financial state-
Federal award or by Federal agency ments which are required to be re-
and major subdivision within the Fed- ported in accordance with GAGAS.
eral agency. For example, the National (b) Summary schedule of prior audit
Institutes of Health is a major subdivi- findings. The summary schedule of
sion in the Department of Health and prior audit findings must report the
Human Services. status of all audit findings included in
(2) For Federal awards received as a the prior audit's schedule of findings
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. mary schedule of prior audit findings
(3) Provide total Federal awards ex- except audit findings listed as cor-
pended for each individual Federal pro- rected in accordance with paragraph
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 ac-
formation is not available. For a clus- cordance with paragraph (b)(3) of this
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 subrecipients from each Federal pro- only list the audit findings and state
gram. that corrective action was taken.
(5) For loan or loan guarantee pro- (2) When audit findings were not cor-
grams described in §200.502 Basis for rected or were only partially corrected,
determining Federal awards expended, the summary schedule must describe
paragraph (b), identify in the notes to the reasons for the finding's recurrence
177
§200.512 2 CFR Ch. II (1-1-14 Edition)
and planned corrective action, and any make copies available for public in-
partial corrective action taken. When spection. Auditees and auditors must
corrective action taken is significantly ensure that their respective parts 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 FAC is the re-
the summary schedule must provide an pository of record for Subpart F—Audit
explanation. Requirements of this part reporting
(3) When the auditee believes the packages and the data collection form.
audit findings are no longer valid or do All Federal agencies, pass-through en-
not warrant further action, the reasons tities and others interested in a report-
for this position must be described in ing package and data collection form
the summary schedule. A valid reason must obtain it by accessing the FAC.
for considering an audit finding as not (1) The auditee must submit required
warranting further action is that all of data elements described 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 oc- the audit was completed in accordance
curred was submitted to the FAC; with this part and provides informa-
(ii) The Federal agency or pass- tion about the auditee, its Federal pro-
through entity is not currently fol- grams, and the results of the audit.
lowing up with the auditee on the audit The data must include information
finding;and available from the audit required by
(iii) 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 coin- 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 FAC, and
the auditor's findings described in include collections of information from
§200.516 Audit findings, a corrective ac- the reporting package described in
tion plan to address each audit finding paragraph (c) of this section. A senior
included in the current year auditor's level representative of the auditee
reports. The corrective action plan (e.g., state controller, director of fi-
must provide the name(s) of the con- nance, chief executive officer, or chief
tact person(s) responsible for correc- financial officer) must sign a state-
tive action, the corrective action ment to be included as part of the data
planned, and the anticipated comple- collection that says that the auditee
tion date. If the auditee does not agree complied with the requirements of this
with the audit findings or believes cor- part, the data were prepared in accord-
rective action is not required, then the ance with this part (and the instruc-
corrective action plan must include an tions accompanying the form), the re-
explanation and specific reasons. porting package does not include Report submission pro-
tected personally identifiable informa-
*200.512Po tion, the information included in its
(a) General. (1) The audit must be entirety is accurate and complete, and
completed and the data collection form that the FAC is authorized to make the
described in paragraph (b) of this.sec- reporting package and the form pub-
tion and reporting package described in licly available on a Web site.
paragraph (c) 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
endar days after receipt of the audi- not to authorize the FAC to make the
tor's report(s), or nine months after reporting package publicly available
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 FAC 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-
(2) Unless restricted by Federal stat- cised, the auditee becomes responsible
utes or regulations, the auditee must for submitting the reporting package
178
w
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 reported the status sion to the FAC.
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 paragraph
statute or regulation, if the auditee (c) of this section and §200.507 Pro-
opts not to authorize publication, it gram-specific audits, paragraph (c) to
must make copies of the reporting the public, except for Indian tribes ex-
package available for public inspec- ercising the option in (b)(2) of this sec-
tion. tion, and maintain a data base of corn-
(3) Using the information included in pleted audits, provide appropriate in-
the reporting package described in formation to Federal agencies, and fol-
paragraph (c) of this section, the audi- low up with known auditees that have
tor must complete the applicable data not submitted the required data collec-
elements of the data collection form. tion forms and reporting packages.
The auditor must sign a statement to (h) Electronic filing. Nothing in this
be included as part of the data collet- part must preclude electronic submis-
tion form that indicates, at a min- sions to the FAC in such manner as
imum, the source of the information may be approved by OMB.
included in the form, the auditor's re-
sponsibility for the information, that FEDERAL AGENCIES
the form is not a substitute for the re- §2Qb.b13 Responsibilities.
porting package described in paragraph
(c)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
(c) Reporting package. The reporting Federal awards must have a cognizant
package must include the: agency for audit. The designated cog-
(1) Financial statements and sched- 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
ments, paragraphs (a) and (b), respec- funding to a non-Federal entity unless
tively; OMB designates a specific cognizant
(2) Summary schedule of prior audit agency for audit.
findings discussed in §200.511 Audit (2) To provide for continuity of cog-
findings follow-up,paragraph(b); nizance, the determination of the pre-
(3) Auditor's report(s) discussed in dominant amount of direct funding
§200.515 Audit reporting;and must be based upon direct Federal
(4) Corrective action plan discussed awards expended in the non-Federal en-
in §200.511 Audit findings follow-up, tity's fiscal years ending in 2009, 2014,
paragraph(c). 2019 and every fifth year thereafter.
(d) Submission to FAC. The auditee For example,audit cognizance for peri-
must electronically submit to the FAC ods ending in 2011 through 2015 will be
• the data collection form described in determined based on Federal 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- nizance 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 management 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 pars- audit must provide notice of the
179
§200.513 2 CFR Ch.II (1-1-14 Edition)
change to the FAC, the auditee,and, if standard performance by auditors must
known, the auditor. The cognizant be referred to appropriate state licens-
agency for audit must: ing agencies and professional bodies for
(i)Provide technical audit advice and disciplinary action.
liaison assistance to auditees and audi- (vi) Coordinate, to the extent prae-
tors. tical, audits or reviews made by or for
(ii)Obtain or conduct quality control Federal agencies that are in addition
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 organiza- reviews build upon rather than dupli-
tions.Cooperate and provide support to cate audits performed in accordance
the Federal agency designated by OMB with this part.
to lead a governmentwide project to (vii) Coordinate a management deci-
determine the quality of single audits sion for cross-cutting audit findings(as
by providing a statistically reliable es- defined in §200.30 Cross-cutting audit
timate of the extent that single audits finding) that affect the Federal pro-
conform to applicable requirements, grams of more than one agency 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, including rec- 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 to auditees as to
every 6 years beginning in 2018 or at how to handle changes in fiscal years.
such other interval as determined by
OMB,and the results must be public. (b) Oversight agency for audit re-
(iii) 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-
direct 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 may reas-
pendent auditors of any noteworthy or sign oversight to another Federal agen-
important factual trends related to the cy 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 FAC, the auditee, and, if
to appropriate state licensing agencies �O� 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- auditees 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
ciencies require corrective action by cognizant agency for audit.
the auditor. When advised of defi- (c) Federal awarding agency respon-
ciencies, the auditee must work with sibilities.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):
Federal awarding agencies and pass- (1) Ensure that audits are completed
through entities of the facts and make and reports are received in a timely
recommendations for follow-up action. manner and in accordance with the re-
Major inadequacies or repetitive sub- quirements of this part.
180
OMB Guidance §200.514
(2) Provide technical advice and for the single audit process both within
counsel to auditees and auditors as re- and outside the Federal government.
quested. (ii) Promote interagency coordina-
(3) Follow-up on audit findings to en- tion, consistency, and sharing in areas
sure that the recipient takes appro- such as coordinating audit follow-up;
priate and timely corrective action. As identifying higher-risk non-Federal en-
part of audit follow-up, the Federal tities; providing input on single audit
awarding agency must: and follow-up policy; enhancing the
(i) Issue a management decision as utility of the FAC; and studying ways
prescribed in §200.521 Management de- to use single audit results to improve
cision; Federal award accountability and best
(ii) Monitor the recipient taking ap- practices.
propriate and timely corrective action; (iii) Oversee training for the Federal
(iii) Use cooperative audit resolution awarding agency's program manage-
mechanisms (see §200.25 Cooperative ment personnel related to the single
audit resolution) to improve Federal audit process.
program outcomes through better (iv) Promote the Federal awarding
audit resolution, follow-up, and correc- agency's use of cooperative audit reso-
tive action;and lution mechanisms.
(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 proc- priate and timely follow-up and correc-
ess 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-
ability and their use by Federal award- cutting audit findings that affect the
ing agencies in making award deci- Federal programs of more than one
sions. Federal awarding agency.
(4) Provide OMB annual updates to (vii) Ensure the Federal awarding
the compliance supplement and work agency provides annual updates of the
with OMB to ensure that the oomph.- compliance supplement to OMB.
ance supplement focuses the auditor to (viii) Support the Federal awarding
test the compliance requirements most agency's single audit accountable offi-
likely to cause improper payments, cial's mission.
fraud, waste, abuse or generate audit
finding for which the Federal awarding AUDITORS
agency will take sanctions. §200,514 Scopeof audit.
(5) Provide OMB with the name of a
single audit accountable official from (a) General. The audit must be con-
among the senior policy officials of the ducted in accordance with GAGAS. The
Federal awarding agency who must be: audit must cover the entire operations
(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,
uses the single audit process to reduce agencies, and other organizational
improper payments and improve Fed- units that expended or otherwise ad-
eral program outcomes. ministered Federal awards during such
(ii) 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-
paragraph(c)(3)(iv)of this section. tures of Federal awards for each such
(iii) Responsible for designating the department, agency, and other organi-
Federal agency's key management sin- zational unit, which must be consid-
gle audit liaison. ered to be a non-Federal entity. The fi-
(6) Provide OMB with the name of a nancial statements and schedule of ex-
key management single audit liaison penditures of Federal awards must be
who must: for the same audit period.
(i) Serve as the Federal awarding (b) Financial statements. The auditor
agency's management point of contact must determine whether the financial
181
§200.515 2 CFR Ch. II (1-1-14 Edition)
statements of the auditee are presented tions of Federal awards that may have
fairly in all material respects in ac- a direct and material effect on each of
cordance with generally accepted ac- its major programs.
counting principles. The auditor must (2) The principal compliance require-
also determine whether the schedule of ments applicable to most Federal pro-
expenditures of Federal awards is stat- grams and the compliance require-
ed fairly in all material respects in re- ments of the largest Federal programs
lation to the auditee's financial state- are included in the compliance supple-
ments as a whole. ment.
(c) Internal control. (1) The compli- (3) For the compliance requirements
ance supplement provides guidance on related to Federal programs contained
internal controls over Federal pro- in the compliance supplement,an audit
grams based upon the guidance in of these compliance requirements will
Standards for Internal Control in the meet the requirements of this part.
Federal Government issued by the Where there have been changes to the
Comptroller General of the United compliance requirements and the
States and the Internal Control—Irate- changes are not reflected in the corn-
grated Framework, issued by the Corn- pliance supplement, the auditor must
mittee of Sponsoring Organizations of determine the current compliance re-
the Treadway Commission(COSO). quirements and modify the audit proce-
(2)In addition to the requirements of dures accordingly. For those Federal
GAGAS, the auditor must perform pro- programs not covered in the compli-
cedures to obtain an understanding of ance supplement, the auditor should
internal control over Federal programs follow the compliance supplement's
sufficient to plan the audit to support guidance for programs not included in
a low assessed level of control risk of the supplement.
noncompliance for major programs.
(3) Except as provided in paragraph (4) The compliance testing must in-
(c)(4) of this section, the auditor must: clude 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
of control risk for the assertions rel- opinion on compliance.
evant to the compliance requirements (e) Audit follow-up. The auditor must
for each major program; and follow-up on prior audit findings, per-
(ii) Perform testing of internal con- form procedures to assess the reason-
trol as planned in paragraph (c)(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
forming of testing described in pars audit findings materially misrepre-
graph (c)(3) of this section are not re- sents the status of any prior audit find
quired for those compliance require ing. 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
lated control risk at the maximum, in §200.512 Report submission para-
and consider whether additional corn- graph(b)(3),the auditor must complete
pliance tests are required because of and sign specified sections of the data
ineffective internal control. collection form.
(d) Compliance. (1) In addition to the §200.516 Audit reporting.
requirements of GAGAS, the auditor
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
182
OMB Guidance §200.515
from the manner presented in this sec- (iii) A statement as to whether the
tion. The auditor's report(s)must state audit disclosed any noncompliance
that the audit was conducted in ac- that is material to the financial state-
cordance with this part and include the ments of the auditee;
following: (iv) Where applicable, a statement
(a)An opinion (or disclaimer of opin- about whether significant deficiencies
ion) as to whether the financial state- or material weaknesses in internal con-
ments are presented fairly in all mate- trol over major programs were dis-
rial respects in accordance with gen- closed by the audit;
erally accepted accounting principles (v) The type of report the auditor
and an opinion (or disclaimer of opin- issued on compliance for major pro-
ion) as to whether the schedule of ex- grams (i.e., unmodified opinion, quali-
penditures of Federal awards is fairly fled opinion, adverse opinion, or dis-
stated in all material respects in rela- claimer of opinion);
tion to the financial statements as a (vi) A statement as to whether the
whole. audit disclosed any audit findings that
(b) A report on internal control over the auditor is required to report under
financial reporting and compliance §800.516 Audit findings paragraph(a);
with Federal statutes, regulations, and
pro-
the terms and conditions of the Federal (vim) An identification of major grams by listing each individual major
award, noncompliance with which
could have a material effect on the fi- program; however in the case of a clus-
nancial statements. This report must ter of programs only the cluster name
describe the scope of testing of internal toas essho of d the Schedule qf ired;Expe -
control and compliance and the results tares Federal Awards is required;
of the tests, 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
in paragraph(d)of this section. Major program determination para-
(c) A report on compliance for each graph (b)(1), or (b)(3) when a recalcula-
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
clads an opinion or modified opinion as auditee 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.
terms and conditions of Federal awards (2) Findings relating to the financial
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 GAGAS.
to the separate schedule of findings and (3) Findings and questioned costs for
questioned costs described in para- Federal awards which must include
graph(d)of this section. audit findings as defined in §200.516
(d) A schedule of findings and ques- Audit findings, paragraph(a).
tioned costs which must include the (i) 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
sults,which must include: to the same issue should be presented
(i) The type of report the auditor as a single audit finding. Where prac-
issued on whether the financial state- tical, audit findings should be orga-
ments audited were prepared in accord- nized 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 applicable, 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 con- 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
183
§200.516 2 CFR Ch. II (1-1-14 Edition)
may be in summary form with a ref- the auditor must include information
erence to a detailed reporting in the to provide proper perspective for judg-
other section of the schedule. ing the prevalence and consequences of
(e) Nothing in this part precludes the questioned costs.
combining of the audit reporting re- (4) Known questioned costs that are
quired by this section with the report- greater than $25,000 for a Federal pro-
ing required by§200.512 Report submis- graerthan is not for a aaj or
sion, paragraph (b) Data Collection gram which not for audit as a major
when allowed by GAGAS and Appendix program.tha Except followup,
X to Part 200—Data Collection Form partar auditor isnot requireditprocedures under thisfr
(Form SF-SAC). to perform audit for
such a Federal program; therefore, the
§200.516 Audit findings, auditor will normally not find ques-
(a) Audit findings reported. The audi- tioned costs for a program that is not
tor must report the following as audit audited as a major program. However,
findings in a schedule of findings and if the auditor does become aware of
questioned costs: questioned costs for a Federal program
(1) Significant deficiencies and mate- that is not audited as a major program
(e.g.,as part of audit follow-up or other
rial weaknesses in internal control
over major programs and significant audit procedures) and the known ques
instances of abuse relating to major tioned costs are greater than $25,000,
programs. The auditor's determination then the auditor must report this as an
of whether a deficiency in internal con- audit finding.
trol is a significant deficiency or mate- (5) The circumstances concerning
rial weakness for the purpose of report- why the auditor's report on compliance
ing an audit finding is in relation to a for each major program is other than
type of compliance requirement for a an unmodified opinion, unless such cir-
major program identified in the Corn- cumstances are otherwise reported as
pliance Supplement. audit findings in the schedule of find-
(2) Material noncompliance with the ings and questioned costs for Federal
provisions of Federal statutes, regula- awards.
tions, or the terms and conditions of (6) Known or likely fraud affecting a
Federal awards related to a major pro- Federal award, unless such fraud is
gram. The auditor's determination of otherwise reported as an audit finding
whether a noncompliance with the pro- in the schedule of findings and ques-
visions of Federal statutes, regula- tioned costs for Federal awards. This
tions, or the terms and conditions of paragraphinned osts for Federal awards.
Federal awards is material for the pur- doesb not require the auditor
pose of reporting an audit finding is in to reportd compromisei information investigative
which
relation to a type of compliance re-
legal investigative or
addi-
quirement for a major program identi- legal proceedings or to make an fied in the compliance supplement. -lanai reporting when the auditor con-
Known questioned costs that are firms that the fraud was reported out-
(3)greater than $25,000 for a type of corn- side the auditor's reports under the di-
pliance requirement for a major pro- sect reporting requirements of GAGAS.
gram. Known questioned costs are (7) Instances where the results of
those specifically identified by the audit follow-up procedures disclosed
auditor. In evaluating the effect of that the summary schedule of prior
questioned costs on the opinion on audit findings prepared by the auditee
compliance, the auditor considers the in accordance with §200.511 Audit find-
best estimate of total costs questioned ings follow-up, paragraph (b) materi-
(likely questioned costs), not just the ally misrepresents the status of any
questioned costs specifically identified prior audit finding.
(known questioned costs). The auditor (b) Audit finding detail and clarity.
must also report known questioned Audit findings must be presented in
costs when likely questioned costs are sufficient detail and clarity for the
greater than $25,000 for a type of corn- auditee to prepare a corrective action
pliance requirement for a major pro- plan and take corrective action, and
gram. In reporting questioned costs, for Federal agencies and pass-through
184
OMB Guidance §200.517
entities to arrive at a management de- resent an isolated instance or a sys-
cision. The following specific informa- temic problem. Where appropriate, in-
ton must be included, as applicable,in stances identified must be related to
audit findings: the universe and the number of cases
(1) Federal program and specific Fed- examined and be quantified in terms of
eral award identification including the dollar value. The auditor should report
CFDA title and number, Federal award whether the sampling was a stalls-
identification 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 identification so any applicable prior year audit find-
number, is not available, the auditor ing numbers.
must provide the best information (9) Recommendations to prevent fu-
available to describe the Federal ture occurrences of the deficiency iden-
award. tified in the audit finding.
(2) The criteria or specific require- (10) Views of responsible officials of
ment upon which the audit finding is the auditee.
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- erence number 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
dence and understanding findings. allow for easy referencing of the audit
(3) The condition found, including findings during follow-up.
facts that support the deficiency iden-
tified in the audit finding. §200.517 Audit documentation.
(4) A statement of cause that identi- (a) Retention of audit documentation.
fies the reason or explanation for the The auditor must retain audit docu-
condition or the factors responsible for mentation and reports for a minimum
the difference between the situation of three years after the date of
that exists(condition)and the required issuance of the auditor's report(s) to
or desired state (criteria), which may the auditee, unless the auditor is not-
also serve as a basis for recommenda- fied in writing by the cognizant agency
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 case of a sub- aware that the Federal agency, pass-
recipient, to permit them to determine through entity, or auditee 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
fect 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
(6) 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
cable 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- ings, or to carry out oversight respon-
spective for judging the prevalence and sibilities consistent with the purposes
consequences of the audit findings, of this part. Access to audit docu-
such as whether the audit findings rep- mentation includes the right of Federal
185
§200.518 2 CFR Ch. II (1-1-14 Edition)
agencies to obtain copies of audit docu- loans if the value of Federal awards ex-
mentation, as is reasonable and nee- pended for loans within the program
essary. comprises fifty percent or more of the
total Federal awards expended for the
§200.518 Major program determine- program. A cluster of programs is
tion- 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 §200.502 Basis for deter-
grams. This risk-based approach must mining Federal awards expended.
include consideration of: current and (4) For biennial audits permitted
prior audit experience, oversight by under§200.504 Frequency of audits, the
Federal agencies and pass-through en- determination of Type A and Type B
tities,and the inherent risk of the Fed- programs must be based upon the Fed-
eral program. The process in para- eral awards expended during the two-
graphs (b) through (i) of this section year period.
must be followed. (c) 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 determina-
which must be labeled Type A pro- tion, the auditor must consider wheth-
grams. Type A programs are defined as er the requirements in§200.519 Criteria
Federal programs with Federal awards for Federal program risk paragraph(c),
expended during the audit period ex- the results of audit follow-up, or any
ceeding the levels outlined in the table changes in personnel or systems affect-
in this paragraph(b)(1): ing the program indicate significantly
increased risk and preclude the pro-
Total Federal awards ex- Type AB threshold gram from being low risk. For a Type
pended
A program to be considered low-risk, it
Equal to$750,000 but less $750,000. must have been audited as a major pro-
than or equal to$25 million. gram in at least one of the two most
Exceed$25 million but less Total Federal awards ex-
than or equal to$100 mil- pended times.03. recent audit periods (in the most re-
lion. cent audit period in the case of a bien-
Exceed$100 million but less $3 million. nial audit), and, in the most recent
than or equal billion. audit period, the program must have
Exceed$1 billionn butut less Total Federal awards ex- audit period, the program must have
than or equal to$10 billion. pended times.003. not had:
Exceed$10 billion but less $30 million. (i) Internal control deficiencies
than or equal to$20 billion which were identified as material
Exceed$20 billion Total Federal awards ex-
pended times.0015. weaknesses in the auditor's report on
internal control for major programs as
(2) Federal programs not labeled required under §200.515 Audit report-
Type A under paragraph (b)(1) of this ing,paragraph(c);
section must be labeled Type B pro- (ii) A modified opinion on the pro-
grams. gram in the auditor's report on major
(3) 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, OMB 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 consid-
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
186
OMB Guidance §200.519
U.S.C. 3515. The Federal awarding additional Federal programs with Fed-
agency must notify the recipient and, eral awards expended that, in aggre-
if known, the auditor of OMB's ap- gate, all major programs encompass at
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 audi-
dited. tor must audit the major programs
(d) Step three. (1) The auditor must identified in Step 4 (paragraphs (e)(1)
identify Type B programs which 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 risk. 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
Type A programs identified as low-risk must include in the audit documenta-
under Step 2 (paragraph (c) 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
problems as discussed in §200.519 Cri- major program determination was per-
teria for Federal program risk para- formed and documented in accordance
graphs (b)(1), (b)(2), and (c)(1), a single with this Subpart, the auditor's judg-
criteria in risk would seldom cause a ment in applying the risk-based ap-
Type B program to be considered high- proach 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-
provides an opportunity for different proper use of the requirements in this
high-risk Type B programs to be au- part. However, Federal agencies and
dited as major over a period of time. pass-through entities may provide
(2)The auditor is not expected to per- auditors guidance about the risk of a
form risk assessments on relatively particular Federal program and the
small Federal programs. Therefore, the auditor must consider this guidance in
auditor is only required to perform risk determining major programs in audits
assessments on Type B programs that not yet completed.
exceed twenty-five percent(0.25) of the
Type A threshold determined in Step 1 §200.519 Criteria for Federal program
(paragraph(b)of this section). risk.
(e) Step four. At a minimum, the (a) General. The auditor's determina-
tion must audit all of the following
as major programs: should be based on an overall eval-
(1) All Type A programs not identi- uation of the risk of noncompliance oc-
fied as low risk under step two (para- curring that could be material to the
graph(c)(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), (c), and (d) of this sec-
(d)of this section). tion, to identify risk in Federal pro-
(3) Such additional programs as may grams. Also, as part of the risk anal-
be necessary to comply with the per- ysis, the auditor may wish to discuss a
centage of coverage rule discussed in particular Federal program with
paragraph (f) of this section. This may auditee management and the Federal
require the auditor to audit more pro- agency or pass-through 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-
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,
187
§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 (2)The phase of a Federal program in
the Federal programs. its life cycle at the Federal agency
(i) A Federal program administered may indicate risk. For example, a new
under multiple internal control struc- Federal program with new or interim
tures may have higher risk. When as- regulations may have higher risk than
sessing risk in a large single audit, the an established program with time-test-
auditor must consider whether weak- ed regulations. Also, significant
nesses are isolated in a single oper- changes in Federal programs, statutes,
ating unit (e.g., one college campus) or regulations, or the terms and condi-
pervasive throughout the entity. tions of Federal awards may increase
(ii) When significant parts of a Fed- risk.
eral program are passed through to (3)The phase of a Federal program in
subrecipients,a weak system for moni- its life cycle at the auditee may indi-
toring subrecipients would indicate cate risk. For example,during the first
higher risk. and last years that an auditee partici-
(2) Prior audit findings would indi- pates in a Federal program, the risk
cate higher risk, particularly when the may be higher due to start-up or close-
situations identified in the audit find- out of program activities and staff.
ings could have a significant impact on (4) Type B programs with larger Fed-
a Federal program or have not been eral awards expended would be of high-
corrected. er risk than programs with substan-
(3)Federal programs not recently au- tially smaller Federal awards ex-
dited as major programs may be of pended.
higher risk than Federal programs re-
cently audited as major programs with- §200.520 Criteria for a low-risk
out audit findings. auditee.
(c)Oversight exercised by Federal agen- An auditee that meets all of the fol-
cies and pass-through entities. (1) Over- lowing conditions for each of the pre-
sight exercised by Federal agencies or ceding two audit periods must qualify
pass-through entities could be used to as a low-risk auditee and be eligible for
assess risk. For example, recent moni- reduced audit coverage in accordance
toring or other reviews performed by with §200.518 Major program deter-
an oversight entity that disclosed no mination.
significant problems would indicate (a) Single audits were performed on
lower risk, whereas monitoring that an annual basis in accordance with the
disclosed significant problems would provisions of this Subpart, including
indicate higher risk. submitting the data collection form
(2)Federal agencies,with the concur- and the reporting package to the FAC
rence of OMB, may identify Federal within the timeframe specified in
programs that are higher risk. OMB §200.512 Report submission. A non-Fed-
will provide this identification in the eral entity that has biennial audits
compliance supplement. does not qualify as a low-risk auditee.
(d) Inherent risk of the Federal pro- (b) The auditor's opinion on whether
gram. (1) The nature of a Federal pro- the financial statements were prepared
gram may indicate risk. Consideration in accordance with GAAP, or a basis of
should be given to the complexity of accounting required by state law, and
the program and the extent to which the auditor's in relation to opinion on
the Federal program contracts for the schedule of expenditures of Federal
goods and services. For example, Fed- awards were unmodified.
eral programs that disburse funds (c) There were no deficiencies in in-
through third party contracts or have ternal control which were identified as
eligibility criteria may be of higher material weaknesses under the require-
risk. Federal programs primarily in- ments of GAGAS.
volving staff payroll costs may have (d) The auditor did not report a sub-
high risk for noncompliance with re- stantial doubt about the auditee's abil-
quirements of §200.430 Compensation— ity to continue as a going concern.
188
OMB Guidance Pt.200,App. I
(e)None of the Federal programs had cision for findings that relate to Fed-
audit findings from any of the fol- eral awards it makes to non-Federal
lowing in either of the preceding two entities.
audit periods in which they were classi- (c)Pass-through entity. As provided in
fied as Type A programs: §200.331 Requirements for pass-through
(1) Internal control deficiencies that entities, paragraph (d), the pass-
were identified as material weaknesses through entity must be responsible for
in the auditor's report on internal con- issuing a management decision for
trol for major programs as required audit findings that relate to Federal
under §200.515 Audit reporting, para- awards it makes to subrecipients.
graph(c); (d) Time requirements. The Federal
(2) A modified opinion on a major awarding agency or pass-through enti-
program in the auditor's report on ty responsible for issuing a manage-
major programs as required under ment decision must do so within six
§200.515 Audit reporting, paragraph (c); months of acceptance of the audit re-
or port by the FAC.The auditee must ini-
(3) Known or likely questioned costs tiate and proceed with corrective ac-
that exceeded five percent of the total tion as rapidly as possible and correc-
Federal awards expended for a Type A tive action should begin no later than
program during the audit period. upon receipt of the audit report.
(e) Reference numbers. Management
MANAGEMENT DECISIONS decisions must include the reference
numbers the auditor assigned to each
§200.521 Management decision. audit finding in accordance with
(a) General. The management deci- §200.516 Audit findings paragraph(c).
sion must clearly state whether or not APPENDIX I TO PART 200—FULL TEXT OF
the audit finding is sustained, the rea- NOTICE OF FUNDING OPPORTUNITY
sons for the decision, and the expected
auditee action to repay disallowed The full text of the notice of funding op-
costs, make financial adjustments, or portunity is organized in sections. The re-
take other action. If the auditee has quired format outlined in this appendix indi-
not completed corrective action, a cates immediately following the title of each
timetable for follow-up should be section whether that section is required in
every announcement or is a Federal award-
given. Prior to issuing the manage- ing agency option.The format is designed so
ment decision, the Federal agency or that similar types of information will appear
pass-through entity may request addi- in the same sections in announcements of
tonal information or documentation different Federal funding opportunities. To-
from the auditee, including a request ward that end, there is text in each of the
for auditor assurance related to the following sections to describe the types of in-
documentation, as a way of mitigating in-
formation that a Federal awarding agency
disallowed costs. The management de- would include in that section of an actual
announcement.
cision should describe any appeal pros- A Federal awarding agency that wishes to
ess available to the auditee. While not include information that the format does not
required, the Federal agency or pass- specifically discuss may address that subject
through entity may also issue a man- in whatever section(s) is most appropriate.
agement decision on findings relating For example, if a Federal awarding agency
to the financial statements which are chooses to address performance goals in the
to be reported in accordance announcement,it might do so in the funding
required GA l opportunity description,the application con-
withtent,or the reporting requirements.
(b) Federal agency. As provided in Similarly, when this format calls for a
§200.513 Responsibilities, paragraph type of information to be in a particular sec-
(a)(7), the cognizant agency for audit tion, a Federal awarding agency wishing to
must be responsible for coordinating a address that subject in other sections may
management decision for audit find- elect to repeat the information in those sec-
ings that affect the programs of more tions or use cross references between the one Federal agency. As provided sec-
tions (there should be hyperlinks for cross-
thanreferences in any electronic versions of the
in §200.513 Responsibilities, paragraph announcement). For example, a Federal
(c)(3), a Federal awarding agency is re- awarding agency may want to include in
sponsible for issuing a management de- Section I information about the types of
189
Pt.200, App.I 2 CFR Ch. II (1-1-14 Edition)
non-Federal entities who are eligible to quired or Federal award administration in-
apply. The format specifies a standard loca- formation in section D.Application and Sub-
tion for that information in Section ll1.1 but mission Information). If procurement con-
that does not preclude repeating the infor- tracts also may be awarded, this must be
mation in Section I or creating a cross ref- stated.
erence between Sections I and Dl.l, as long
as a potential applicant can find the infor- C.ELIGIBILITY INFORMATION
mation quickly and easily from the standard This section addresses the considerations
location. or factors that determine applicant or appli-
The sections of the full text of the an- cation eligibility. This includes the eligi-
nouncement are described in the following bility of particular types of applicant organi-
paragraphs. zations, any factors affecting the eligibility
A.PROGRAM DEscRiPTION—REQUIRED of the principal investigator or project direc-
tor, and any criteria that make particular
This section contains the full program de- projects ineligible. Federal agencies should
scription of the funding opportunity.It may make clear whether an applicant's failure to
be as long as needed to adequately commu- meet an eligibility criterion by the time of
nicate to potential applicants the areas in an application deadline will result in the
which funding may be provided. It describes Federal awarding agency returning the ap-
the Federal awarding agency's funding prior- plication without review or, even though an
ities or the technical or focus areas in which application may be reviewed, will preclude
the Federal awarding agency intends to pro- the Federal awarding agency from making a
vide assistance. As appropriate, it may in- Federal award.Key elements to be addressed
elude any program history(e.g.,whether this are:
is a new program or a new or changed area of 1. Eligible Applicants—Required. Announce-
program emphasis). This section may com- ments must clearly identify the types of en-
municate indicators of successful projects tities that are eligible to apply.If there are
(e.g., if the program encourages collabo- no restrictions on eligibility, this section
rative efforts) and may include examples of may simply indicate that all potential appli-
projects that have been funded previously. cants are eligible.If there are restrictions on
This section also may include other informa- eligibility, it is important to be clear about
tion the Federal awarding agency deems nec- the specific types of entities that are eligi-
essary,and must at a minimum include cita- ble, not just the types that are ineligible.
tions for authorizing statutes and regula- For example, if the program is limited to
tions for the funding opportunity. nonprofit organizations subject to 26 U.S.C.
B.FEDERAL AWARD INFORMATION—REQUIRED 501(c)(3)of the tax code (26 U.S.C. 501(c)(3)),
the announcement should say so. Similarly,
This section provides sufficient informa- it is better to state explicitly that Native
tion to help an applicant make an informed American tribal organizations are eligible
decision about whether to submit a proposal. than to assume that they can unambiguously
Relevant information could include the total infer that from a statement that nonprofit
amount of funding that the Federal awarding organizations may apply.Eligibility also can
agency expects to award through the an- be expressed by exception, (e.g., open to all
nouncement;the anticipated number of Fed- types of domestic applicants other than indi-
eral awards; the expected amounts of indf- viduals). This section should refer to any
vidual Federal awards (which may be a portion of Section IV specifying documenta-
range); the amount of funding per Federal tion that must be submitted to support an
award, on average, experienced in previous eligibility determination (e.g., proof of
years; and the anticipated start dates and 5O1(c)(3)status as determined by the Internal
periods of performance for new Federal Revenue Service or an authorizing tribal res-
awards. This section also should address olution).To the extent that any funding re-
whether applications for renewal or sup- striction in Section IV.5 could affect the eli-
plementation of existing projects are eligible gibility of an applicant or project, the an-
to compete with applications for new Fed- nouncement must either restate that restric-
eral awards. tion in this section or provide a cross-ref-
This section also must indicate the type(s) erence to its description in Section IV.5.
of assistance instrument(e.g.,grant,cooper- 2. Cost Sharing or Matching—Required. An-
ative agreement)that may be awarded if ap- nouncements must state whether there is re-
plications are successful. If cooperative quired cost sharing, matching, or cost par-
agreements may be awarded,this section ei- ticipation without which an application
ther should describe the "substantial in- would be ineligible(if cost sharing is not re-
volvement"that the Federal awarding agen- quired, the announcement must explicitly
cy expects to have or should reference where say so).Required cost sharing may be a cer-
the potential applicant can find that infor- tain percentage or amount,or may be in the
mation (e.g., in the funding opportunity de- form of contributions of specified items or
scription in A. Program Description—Re- activities(e.g.,provision of equipment).It is
190
OMB Guidance Pt.200,App. i
important that the announcement be clear quired forms or formats as part of the an-
about any restrictions on the types of cost nouncement or state where the applicant
(e.g.,in-kind contributions) that are accept- may obtain them.
able as cost sharing.Cost sharing as an eligi- This section should specifically address
bility criterion includes requirements based content and form or format requirements
in statute or regulation, as described in for:
§200.306 Cost sharing or matching of this i. Pre-applications, letters of intent, or
Part. This section should refer to the appro- white papers required or encouraged (see
priate portion(s) of section D. Application Section IV.3), including any limitations on
and Submission Information stating any pre- the number of pages or other formatting re-
award requirements for submission of letters quirements similar to those for full applica-
or other documentation to verify commit- tions.
ments to meet cost-sharing requirements if a ii.The application as a whole. For all sub-
Federal award is made. missions,this would include any limitations
3.Other—Required,if applicable.If there are on the number of pages, font size and type-
other eligibility criteria (i.e., criteria that face, margins,paper size, number of copies,
have the effect of making an application or and sequence or assembly requirements. If
project ineligible for Federal awards,wheth- electronic submission is permitted or re-
er referred to as "responsiveness" criteria, (wired, this could include special require-
"go-no go" criteria, "threshold" criteria, or ments for formatting or signatures.
in other ways), must be clearly stated and iii. Component pieces of the application
must include a reference to the regulation of (e.g., if all copies of the application must
requirement that describes the restriction, bear original signatures on the face page or
as applicable. For example, if entities that the program narrative may not exceed 10
have been found to be in violation of a par- pages).This includes any pieces that may be
ticular Federal statute are ineligible, it is submitted separately by third parties (e.g.,
important to say so. This section must also references or letters confirming commit-
state any limit on the number of applica- ments from third parties that will be con-
tions an applicant may submit under the an- tributing a portion of any required cost shar-
nouncement and make clear whether the Lug).
limitation is on the submitting organization, iv. Information that successful applicants
individual investigator/program director, or must submit after notification of intent to
both. This section should also address any make a Federal award,but prior to a Federal
eligibility 'criteria for beneficiaries or for award. This could include evidence of corn-
program participants other than Federal pliance with requirements relating to human
award recipients. subjects or information needed to comply
D. with the National Environmental Policy Act
APPLICATION AND SUBMISSION INFORMATION
(NEPA)(42 U.S.C.4321-4370h).
1. Address to Request Application Package— 3. Dun and Bradstreet Universal Numbering
Required. Potential applicants must be told System(DUNS)Number and System for Award
how to get application forms, kits, or other Management(SAM)—Required.
materials needed to apply(if this announce- This paragraph must state clearly that
ment contains everything needed, this sec- each applicant(unless the applicant is an in-
tion need only say so). An Internet address dividual or Federal awarding agency that is
where the materials can be accessed is ac- excepted from those requirements under 2
ceptable.However, since high-speed Internet CFR§25.110(b)or(c),or has an exception ap-
access is not yet universally available for proved by the Federal awarding agency
downloading documents,and applicants may under 2 CFR§25.110(d))is required to: (i)Be
have additional accessibility requirements, registered in SAM before submitting its ap-
there also should be a way for potential ap- plication; (ii) provide a valid DUNS number
plicants to request paper copies of materials, in its application;and(iii)continue to main-
such as a U.S. Postal Service mailing ad- tain an active SAM registration with current
dress, telephone or FAX number, Telephone information at all times during which it has
Device for the Deaf (TDD), Text Telephone an active Federal award or an application or
(TTY) number, and/or Federal Information plan under consideration by a Federal award-
Relay Service(FIRS)number. ing agency. It also must state that the Fed-
2. Content and Form of Application Submis- eral awarding agency may not make a Fed-
sion—Required. This section must identify eral award to an applicant until the appli-
the required content of an application and cant has complied with all applicable DUNS
the forms or formats that an applicant must and SAM requirements and, if an applicant
use to submit it. If any requirements are has not fully complied with the requirements
stated elsewhere because they are general re- by the time the Federal awarding agency is
quirements that apply to multiple programs ready to make a Federal award, the Federal
or funding opportunities,this section should awarding agency may determine that the ap-
refer to where those requirements may be plicant is not qualified to receive a Federal
found. This section also should include re- award and use that determination as a basis
191
Pt. 200, App. I 2 CFR Ch.II (1-1-14 Edition)
for making a Federal award to another appli- mental Review of Federal Programs," the
cant. notice must say so. In alerting applicants
4. Submission Dates and Times—Required. that they must contact their state's Single
Announcements must identify due dates and Point of Contact (SPOC) to find out about
times for all submissions. This includes not and comply with the state's process under
only the full applications but also any pre- Executive Order 12372,it may be useful to in-
liminary submissions(e.g., letters of intent, form potential applicants that the names
white papers,or pre-applications).It also in- and addresses of the SPOCs are listed in the
cludes any other submissions of information Office of Management and Budget's Web site.
before Federal award that are separate from www.whitehouse.gov/omb/grants/spoc.html.
the full application. If the funding oppor- 6. Funding Restrictions—Required. Notices
tunity is a general announcement that is must include information on funding restric-
open for a period of time with no specific due tions in order to allow an applicant to de-
flates for applications, this section should velop an application and budget consistent
say so. Note that the information on dates program requirements. Examples are
that is included in this section also must ap-
pear with other overview information in a lo- whether construction is an allowable activ-
cation preceding the full text of the an- ity, if there are any limitations on direct
nouncement (see §200.203 Notices of funding costs such as foreign travel or equipment
opportunities of this Part). purchases,and if there are any limits on in-
Each type of submission should be des- direct costs(or facilities and administrative
ignated as encouraged or required and,if re- costs).Applicants must be advised if Federal
quired, any deadline date (or dates, if the awards will not allow reimbursement of pre-
Federal awarding agency plans more than Federal award costs.
one cycle of application submission, review, 7. Other Submission Requirements—Required.
and Federal award under the announcement) This section must address any other submis-
should be specified.The announcement must sion requirements not included in the other
state(or provide a reference to another docu- paragraphs of this section. This might in-
ment that states): elude the format of submission,i.e.,paper or
i.Any deadline in terms of a date and local electronic,for each type of required submis-
time. If the due date falls on a Saturday, Sion. Applicants should not be required to
Sunday, or Federal holiday, the reporting submit in more than one format and this sec-
package is due the next business day. tion should indicate whether they may
ii.What the deadline means (e.g., whether choose whether to submit applications in
it is the date and time by which the Federal hard copy or electronically,may submit only
awarding agency must receive the applica- in hard copy, or may submit only electroni-
tion,the date by which the application must tally.
be postmarked, or something else) and howth This section also must indicate where ap
mat depends, if mail,t all, ono the submission plications(and any pre-applications)must be
motherd (e.g., electronic, or personal/ submitted if sent by postal mail, electronic
courier delivery).
iii. The effect of missing a deadline (e.g., means, or hand-delivery. For postal mail
whether late applications are neither re- submission,this must include the name of an
viewed nor considered or are reviewed and office, official, individual or function (e.g.,
considered under some circumstances). application receipt center) and a complete
iv.How the receiving Federal office deter- mailing address. For electronic submission,
mines whether an application or pre-applica- this must include the URL or email address;
tion has been submitted before the deadline. whether a password(s) is required; whether
This includes the form of acceptable proof of particular software or other electronic capa-
mailing or system-generated documentation bilities are required;what to do in the event
of receipt date and time. of system problems and a point of contact
This section also may indicate whether, who will be available in the event the appli-
when,and in what form the applicant will re- cant experiences technical difficulties.,
ceive an acknowledgement of receipt. This
information should be displayed in ways that E.APPLICATION REVIEW INFORMATION
will be easy to understand and use.It can be 1. Criteria—Required. This section must ad-
difficult to extract all needed information dress the criteria that the Federal awarding
from narrative paragraphs, even when they agency will use to evaluate applications.
are well written. A tabular form for pro-
viding a summary of the information may
help applicants for some programs and give ,With respect to electronic methods for
them what effectively could be a checklist to providing information about funding oppor-
verify the completeness of their application tunities or accepting applicants'submissions
package before submission. of information, each Federal awarding agen-
5.Intergovernmental Review—Required,if ap- cy is responsible for compliance with Section
plicable.If the funding opportunity is subject 508 of the Rehabilitation Act of 1973 (29
to Executive Order 12372, "Intergovern- U.S.C.794d).
192
OMB Guidance Pt.200,App. I
This includes the merit and other review cri- people on an evaluation panel and how it op-
teria that evaluators will use to judge appli- erates, the way reviewers are selected, re-
cations,including any statutory,regulatory, viewer qualifications, and the way that con-
or other preferences(e.g.,minority status or filets of interest are avoided.With respect to
Native American tribal preferences) that electronic methods for providing informa-
will be applied in the review process. These tion about funding opportunities or accept-
criteria are distinct from eligibility criteria ing applicants' submissions of information,
that are addressed before an application is each Federal awarding agency is responsible
accepted for review and any program policy for compliance with Section 508 of the Reha-
or other factors that are applied during the bilitation Act of 1973(29 U.S.C.794d).
selection process,after the review process is In addition,if the Federal awarding agency
completed. The intent is to make the appli- permits applicants to nominate suggested re-
cation process transparent so applicants can viewers of their applications or suggest those
make informed decisions when preparing they feel may be inappropriate due to a con-
their applications to maximize fairness of flirt of interest, that information should be
the process.The announcement should clear- included in this section.
ly describe all criteria, including any sub- 3. Anticipated Announcement and Federal
criteria. If criteria vary in importance, the Award Dates—Optional. This section is in-'
announcement should specify the relative tended to provide applicants with informa-
percentages,weights,or other means used to tion they can use for planning purposes. If
distinguish among them.For statutory, reg- there is a single application deadline fol-
ulatory, or other preferences, the announce- lowed by the simultaneous review of all ap-
ment should provide a detailed explanation plications, the Federal awarding agency can
of those preferences with an explicit indica- include in this section information about the
tion of their effect(e.g.,whether they result anticipated dates for announcing or noti-
in additional points being assigned). fying successful and unsuccessful applicants
If an applicant's proposed cost sharing will and for having Federal awards in place.If ap-
be considered in the review process (as op- plications are received and evaluated on a
posed to being an eligibility criterion de- "rolling" basis at different times during an
scribed in Section III.2), the announcement extended period, it may be appropriate to
must specifically address how it will be con- give applicants an estimate of the time need-
sidered (e.g., to assign a certain number of ed to process an application and notify the
additional points to applicants who offer applicant of the Federal awarding agency's
cost sharing,or to break ties among applica- decision.
tions with equivalent scores after evaluation
against all other factors).If cost sharing will F.FEDERAL AWARD ADMINISTRATION
not be considered in the evaluation, the an- INFORMATION
nouncement should say so, so that there is 1. Federal Award Notices—Required. This
no ambiguity for potential applicants.Vague section must address what a successful appli-
statements that cost sharing is encouraged, cant can expect to receive following selec-
without clarification as to what that means, tion. If the Federal awarding agency's prac-
are unhelpful to applicants.It also is impor- tice is to provide a separate notice stating
tant that the announcement be clear about that an application has been selected before
any restrictions on the types of cost(e.g.,in- it actually makes the Federal award, this
kind contributions) that are acceptable as section would be the place to indicate that
cost sharing. the letter is not an authorization to begin
2. Review and Selection Process—Required. performance (to the extent that it allows
This section may vary in the level of detail charging to Federal awards of pre-award
provided. The announcement must list any costs at the non-Federal entity's own risk).
program policy or other factors or elements, This section should indicate that the notice
other than merit criteria, that the selecting of Federal award signed by the grants officer
official may use in selecting applications for (or equivalent)is the authorizing document,
Federal award(e.g.,geographical dispersion, and whether it is provided through postal
program balance, or diversity). The Federal mail or by electronic means and to whom.It
awarding agency may also include other ap- also may address the timing, form, and con-
propriate details. For example, this section tent of notifications to unsuccessful appli-
may indicate who is responsible for evalua- cants. See also §200.210 Information con-
tion against the merit criteria(e.g.,peers ex- tained in a Federal award.
ternal to the Federal awarding agency or 2. Administrative and National Policy Re-
Federal awarding agency personnel) and/or quirements—Required.This section must iden-
who makes the final selections for Federal tify the usual administrative and national
awards.If there is a multi-phase review proc- policy requirements the Federal awarding
ess(e.g.,an external panel advising internal agency's Federal awards may include. Pro-
Federal awarding agency personnel who viding this information lets a potential ap-
make final recommendations to the deciding plicant identify any requirements with
official),the announcement may describe the which it would have difficulty complying if
phases. It also may include: the number of its application is successful. In those cases,
193
Pt. 200,App. II 2 CFR Ch.11 (1-1-14 Edition)
early notification about the requirements al- H.OTHER INFORMATION—OPTIONAL
lows the potential applicant to decide not to
nal
apply or to take needed actions before re- for Lin sectionmay includessis any potaddential that will assist a potential ap-
ceiving the Federal award. The announce- plicant.For example,the section might:
meat need not include all of the terms and i. Indicate whether this is a new program
conditions of the Federal award, but may or a one-time initiative.
refer to a document(with information about ii. Mention related programs or other up-
how to obtain it) or Internet site where ap- coming or ongoing Federal awarding agency
plicants can see the terms and conditions.If funding opportunities for similar activities.
this funding opportunity will lead to Federal iii. Include current Internet addresses for
awards with some special terms and condi- Federal awarding agency Web sites that may
tions that differ from the Federal awarding be useful to an applicant in understanding
agency's usual(sometimes called"general") the program.
terms and conditions, this section should iv.Alert applicants to the need to identify
highlight those special terms and conditions. proprietary information and inform them
Doing so will alert applicants that have re- about the way the Federal awarding agency
ceived Federal awards from the Federal will handle it.
awarding agency previously and might not v.Include certain routine notices to appli-
cantsotherwise expect different terms and condi- (e.g., that the Federal government is
not obligated to make any Federal award as
tions. For the same reason, the announce- a result of the announcement or that only
ment should inform potential applicants grants officers can bind the Federal govern-
•about special requirements that could apply ment to the expenditure of funds).
to particular Federal awards after the review
of applications and other information, based APPENDIX II TO PART 200—CONTRACT
on the particular circumstances of the effort PROVISIONS FOR NON-FEDERAL ENTI-
to be supported(e.g.,if human subjects were TY CONTRACTS UNDER FEDERAL
to be involved or if some situations may jus- AWARDS
tit, special terms on intellectual property,
data sharing or security requirements). In addition to other provisions required by
3. Reporting—Required. This section must the Federal agency or non-Federal entity,all
include general information about the type contracts made by the non-Federal entity
(e.g., financial or performance), frequency, under the Federal award must contain provi-
and means of submission (paper or elec- sions covering the following,as applicable.
tronic) of post-Federal award reporting re- (A)Contracts for more than the simplified
quirements. Highlight any special reporting acquisition threshold currently set at
requirements for Federal awards under this $150,000, which is the inflation adjusted
funding opportunity that differ (e.g., by re amount determined by the Civilian Agency
port type, frequency, form/format, or cir- Acquisition Council and the Defense Acquisi-
port tances for use) from what the Federal tion Regulations Council (Councils) as ad-
awardingau-
agency's Federal awards usually minithors r ivby ,4 U.S.C. ual,1908 must address s
ministrative, contractual, or legal remedies
require. in instances where contractors violate or
G.FEDERAL AWARDING AGENCY CONTACT(s)— breach contract terms, and provide for such
REQUIREDsanctions and penalties as appropriate.
(B)All contracts in excess of$10,000 must
The announcement must give potential ap- address termination for cause and for con-
plicants a point(s) of contact for answering venience by the non-Federal entity including
questions or helping with problems while the the manner by which it will be effected and
funding opportunity is open. The intent of the basis for settlement.
this requirement is to be as helpful as pos- (C) Equal Employment Opportunity. Ex-
sible to potential applicants, so the Federal cept as otherwise provided under 41 CFR
awarding agency should consider approaches Part 60, all contracts that meet the defini-
such as giving: tion of"federally assisted construction con-
i.Points of contact who may be reached in tract"in 41 CFR Part 60-1.3 must include the
multiple ways(e.g.,by telephone, FAX, and/ equal opportunity clause provided under 41
or email,as well as regular mail). CFR 60-1.4(b), in accordance with Executive
ii. A fax or email address that multiple Order 11246,(3 "Equal Employment ,O 1964-
peoplep6r-
access, so that someone will respond 1tunity"
960 Comp., p.F 339),12) as9, amended
e5,3 CFR Part,Executive
even if others are unexpectedly absent Mir- Order ? , "A"Amending
Exe uby v
ing critical periods. 11375, Amending Executive Order
11246 Relating to Equal Employment Oppor-
iii. Different contacts for distinct kinds of tunity,"and implementing regulations at 41
help(e.g.,one for questions of programmatic CFR part 60, "Office of Federal Contract
content and a second for administrative Compliance Programs, Equal Employment
questions). Opportunity,Department of Labor."
194
OMB Guidance Pt.200,App. II
(D)Davis-Bacon Act,as amended(40 U.S.C. materials or articles ordinarily available on
3141-3148).When required by Federal program the open market, or contracts for transpor-
legislation, all prime construction contracts tation or transmission of intelligence.
in excess of $2,000 awarded by non-Federal (F) Rights to Inventions Made Under a
entities must include a provision for compli- Contract or Agreement.If the Federal award
ance with the Davis-Bacon Act (40 U.S.C. meets the definition of"funding agreement"
3141-3144, and 3146-3148) as supplemented by under 37 CFR§401.2 (a) and the recipient or
Department of Labor regulations (29 CFR subrecipient wishes to enter into a contract
Part 5, "Labor Standards Provisions Appli- with a small business firm or nonprofit orga-
cable to Contracts Covering Federally Fi- nization regarding the substitution of par-
nanced and Assisted Construction"). In ac- ties, assignment or performance of experi-
cordance with the statute,contractors must mental, developmental, or research work
be required to pay wages to laborers and me- under that "funding agreement," the recipi-
chanics at a rate not less than the prevailing ent or subrecipient must comply with the re-
wages specified in a wage determination quirements of 37 CFR Part 401,"Rights to In-
made by the Secretary of Labor.In addition, ventions Made by Nonprofit Organizations
contractors must be required to pay wages and Small Business Firms Under Govern-
not less than once a week. The non-Federal ment Grants, Contracts and Cooperative
entity must place a copy of the current pre- Agreements," and any implementing regula-
vailing wage determination issued by the De- tions issued by the awarding agency.
partment of Labor in each solicitation. The (G)Clean Air Act(42 U.S.C.7401-7671q.)and
decision to award a contract or subcontract the Federal Water Pollution Control Act(33
must be conditioned upon the acceptance of U.S.C.1251-1387),as amended—Contracts and
the wage determination.The non-Federal en- subgrants of amounts in excess of $150,000
tity must report all suspected or reported must contain a provision that requires the
violations to the Federal awarding agency. non-Federal award to agree to comply with
The contracts must also include a provision all applicable standards, orders or regula-
for compliance with the Copeland "Anti- tions issued pursuant to the Clean Air Act
Kickback" Act (40 U.S.C. 3145), as supple- (42 U.S.C. 7401-7671q) and the Federal Water
mented by Department of Labor regulations Pollution Control Act as amended(33 U.S.C.
(29 CFR Part 3, "Contractors and Sub- 1251-1387).Violations must be reported to the
contractors on Public Building or Public Federal awarding agency and the Regional
Work Financed in Whole or in Part by Loans Office of the Environmental Protection
or Grants from the United States").The Act Agency(EPA).
provides that each contractor or sub- (H) Mandatory standards and policies re-
recipient must be prohibited from inducing, lating to energy efficiency which are con-
by any means, any person employed in the tained in the state energy conservation plan
construction,completion, or repair of public issued in compliance with the Energy Policy
work, to give up any part of the compensa- and Conservation Act(42 U.S.C.6201).
tion to which he or she is otherwise entitled. (I) Debarment and Suspension (Executive
The non-Federal entity must report all sus- Orders 12549 and 12689)—A contract award
pected or reported violations to the Federal (see 2 CFR 180.220)must not be made to par-
awarding agency. ties listed on the governmentwide Excluded
(E) Contract Work Hours and Safety Parties List System in the System for Award
Standards Act (40 U.S.C. 3701-3708). Where Management(SAM), in accordance with the
applicable,all contracts awarded by the non- OMB guidelines at 2 CFR 180 that implement
Federal entity in excess of$100,000 that in- Executive Orders 12549 (3 CFR Part 1986
volve the employment of mechanics or labor- Comp., p. 189) and 12689 (3 CFR Part 1989
ers must include a provision for compliance Comp.,p.235),"Debarment and Suspension."
with 40 U.S.C.3702 and 3704,as supplemented The Excluded Parties List System in SAM
by Department of Labor regulations(29 CFR contains the names of parties debarred, sus-
Part 5).Under 40 U.S.C.3702 of the Act,each pended,or otherwise excluded by agencies,as
contractor must be required to compute the well as parties declared ineligible under stat-
wages of every mechanic and laborer on the utory or regulatory authority other than Ex-
basis of a standard work week of 40 hours. ecutive Order 12549.
Work in excess of the standard work week is (J) Byrd Anti-Lobbying Amendment (31
permissible provided that the worker is com- U.S.C. 1352)—Contractors that apply or bid
pensated at a rate of not less than one and a for an award of$100,000 or more must file the
half times the basic rate of pay for all hours required certification. Each tier certifies to
worked in excess of 40 hours in the work the tier above that it will not and has not
week.The requirements of 40 U.S.C. 3704 are used Federal appropriated funds to pay any
applicable to construction work and provide person or organization for influencing or at-
that no laborer or mechanic must be re- tempting to influence an officer or employee
quired to work in surroundings or under of any agency,a member of Congress, officer
working conditions which are unsanitary, or employee of Congress,or an employee of a
hazardous or dangerous.These requirements member of Congress in connection with ob-
do not apply to the purchases of supplies or taining any Federal contract, grant or any
195
Pt.200,App. III 2 CFR Ch. II(1-1-14 Edition)
other award covered by 31 U.S.C. 1352. Each (1) Sponsored research means all research
tier must also disclose any lobbying with and development activities that are spon-
non-Federal funds that takes place in con- sored by Federal and non-Federal agencies
nection with obtaining any Federal award. and organizations.This term includes activi-
Such disclosures are forwarded from tier to ties involving the training of individuals in
tier up to the non-Federal award. research techniques (commonly called re-
(K) See §200.322 Procurement of recovered search training)where such activities utilize
materials. the same facilities as other research and de-
velopment activities and where such activi-
APPENDIX III TO PART 200—INDIRECT ties are not included in the instruction func-
(F&A) COSTS IDENTIFICATION AND tion.
ASSIGNMENT, AND RATE Di;TN,RMINA- (2) University research means all research
'PION FOR INSTITUTIONS OF HIGHER and development activities that are sepa-
EDUCATION(IIIES) rately budgeted and accounted for by the in-
stitution under an internal application of in-
A.GENERAL stitutional funds. University research, for
This appendix provides criteria for identi- purposes of this document, must be corn-
fying and computing indirect (or indirect bined with sponsored research under the
(F&A))rates at IHEs (institutions). Indirect function of organized research.
(F&A) costs are those that are incurred for c.Other sponsored activities means programs
common or joint objectives and therefore and projects financed by Federal and non-
cannot be identified readily and specifically Federal agencies and organizations which in-
with a particular sponsored project, an in- volve the performance of work other than in-
structional activity, or any other institu- struction and organized research. Examples
tional activity. See subsection B.1, Defini- of such programs and projects are health
tion of Facilities and Administration, for a service projects and community service pro-
discussion of the components of indirect grams.However,when any of these activities
(F&A)costs. are undertaken by the institution without
outside support, they may be classified as
1.Major Functions of an Institution other institutional activities.
Refers to instruction, organized research, d.Other institutional activities means all ac-
other sponsored activities and other institu- tivities of an institution except for instruc-
tional activities as defined in this section: tion, departmental research, organized re
a. Instruction means the teaching and search,and other sponsored activities,as de-
training activities of an institution. Except fined in this section;indirect(F&A)cost ac-
for research training as provided in sub- tivities identified in this Appendix para-
section b,this term includes all teaching and graph B,Identification and assignment of in-
training activities,whether they are offered direct (F&A) costs; and specialized services
for credits toward a degree,or certificate or facilities described in §200.468 Specialized
on a non-credit basis, and whether they are service facilities of this Part.
offered through regular academic depart- Examples of other institutional activities
ments or separate divisions, such as a sum- include operation of residence halls, dining
mer school division or an extension division. halls, hospitals and clinics, student unions,
Also considered part of this major function intercollegiate athletics,bookstores,faculty.
are departmental research, and, where housing, student apartments, guest houses,
agreed to,university research. chapels,theaters,public museums,and other
(1)Sponsored instruction and training means similar auxiliary enterprises.This definition
specific instructional or training activity es- also includes any other categories of activi-
tablished by grant, contract, or cooperative ties, costs of which are "unallowable" to
agreement. For purposes of the cost prin- Federal awards, unless otherwise indicated
ciples, this activity may be considered a in an award.
major function even though an institution's 2.Criteria for Distribution
accounting treatment may include it in the
instruction function. a. Base period. A base period for distribu-
(2) Departmental research means research, tion of indirect (F&A) costs is the period
development and scholarly activities that during which the costs are incurred. The
are not organized research and, con- base period normally should coincide with
sequently, are not separately budgeted and the fiscal year established by the institution,
accounted for. Departmental research, for but in any event the base period should be so
purposes of this document,is not considered selected as to avoid inequities in the dis-
as a major function,but as a part of the in- tribution of costs.
struction function of the institution. b. Need for cost groupings. The overall ob-
b. Organized research means all research jective of the indirect(F&A) cost allocation
and development activities of an institution process is to distribute the indirect (F&A)
that are separately budgeted and accounted costs described in Section B, Identification
for.It includes: and assignment of indirect (F&A) costs, to
196
OMB Guidance Pt.200,App.III
the major functions of the institution in pro- expenses, or operation and maintenance ex-
portions reasonably consistent with the na- penses to such activities should be accom-
ture and extent of their use of the institu- plished through cost groupings which include
tion's resources. In order to achieve this ob- only that portion of central indirect (F&A)
jective, it may be necessary to provide for costs (such as for overall management)
selective distribution by establishing sepa- which are properly allocable to such activi-
rate groupings of cost within one or more of ties.
the indirect (F&A) cost categories referred (5) If the institution elects to treat fringe
to in subsection B.1,Definition of Facilities benefits as indirect (F&A) charges, such
and Administration. In general, the cost costs should be set aside as a separate cost
groupings established within a category grouping for selective distribution to related
should constitute, in each case, a pool of cost objectives.
those items of expense that are considered to (6) The number of separate cost groupings
be of like nature in terms of their relative within a category should be held within
contribution to (or degree of remoteness practical limits, after taking into consider-
from)the particular cost objectives to which ation the materiality of the amounts in-
distribution is appropriate. Cost groupings volved and the degree of precision attainable
should be established considering the general
guides provided in subsection c of this sec- through less selective methods of distribu-
tion.Each such pool or cost grouping should tion.
then be distributed individually to the re- d.Selection of distribution method.
lated cost objectives, using the distribution (1) Actual conditions must be taken into
base or method most appropriate in light of account in selecting the method or base to
the guidelines set forth in subsection d of be used in distributing individual cost
this section. groupings.The essential consideration in se-
c. General considerations on cost groupings. letting a base is that it be the one best suit-
The extent to which separate cost groupings ed for assigning the pool of costs to cost ob-
and selective distribution would be appro- jectives in accordance with benefits derived;
priate at an institution is a matter of judg- with a traceable cause-and-effect relation-
ment to be determined on a case-by-case ship; or with logic and reason,where neither
basis.Typical situations which may warrant benefit nor a cause-and-effect relationship is
the establishment of two or more separate determinable.
cost groupings (based on account classifies- (2) If a cost grouping can be identified di-
tion or analysis) within an indirect (F&A) rectly with the cost objective benefitted, it
cost category include but are not limited to should be assigned to that cost objective.
the following: (3) If the expenses in a cost grouping are
(1)If certain items or categories of expense more general in nature,the distribution may
relate solely to one of the major functions of be based on a cost analysis study which re-
the institution or to less than all functions, sults in an equitable distribution of the
such expenses should be set aside as a sepa- costs. Such cost analysis studies may take
rate cost grouping for direct assignment or into consideration weighting factors, popu-
selective allocation in accordance with the lation,or space occupied if appropriate.Cost
guides provided in subsections b and d. analysis studies,however,must(a)be appro-
(2)If any types of expense ordinarily treat- priately documented in sufficient detail for
ed as general administration or depart-
mental administration are charged to Fed- subsequent review by the cognizant agency
eral awards as direct costs,expenses applica- for indirect costs, (b)distribute the costs to
ble to other activities of the institution the related cost objectives in accordance
when incurred for the same purposes in like with the relative benefits derived, (c)be sta-
circumstances must, through separate cost tistically sound,(d)be performed specifically
groupings, be excluded from the indirect at the institution at which the results are to
(F&A) costs allocable to those Federal be used,and(e)be reviewed periodically,but
awards and included in the direct cost of not less frequently than rate negotiations,
other activities for cost allocation purposes. updated if necessary, and used consistently.
(3)If it is determined that certain expenses Any assumptions made in the study must be
are for the support of a service unit or facil- stated and explained. The use of cost anal-
ity whose output is susceptible of measure- ysis studies and periodic changes in the
ment on a workload or other quantitative method of cost distribution must be fully
basis,such expenses should be set aside as a justified.
separate cost grouping for distribution on (4) If a cost analysis study is not per-
such basis to organized research, instruc- formed,or if the study does not result in an
tional,and other activities at the institution equitable distribution of the costs, the dis-
or within the department. tribution must be made in accordance with
(4) If activities provide their own par- the appropriate base cited in Section B,Iden-
chasing, personnel administration, building tification and assignment of indirect (F&A)
maintenance or similar service,the distribu- costs, unless one of the following conditions
tion of general administration and general is met:
197
Pt.200,App. III 2 CFR Ch. II(1-1-14 Edition)
(a)It can be demonstrated that the use of (1) Depreciation on buildings used exclu-
a different base would result in a more equi- sively in the conduct of a single function,
table allocation of the costs, or that a more and on capital improvements and equipment
readily available base would not increase the used in such buildings, must be assigned to
costs charged to Federal awards,or that function.
(b)The institution qualifies for,and elects (2)Depreciation on buildings used for more
to use, the simplified method for computing than one function, and on capital improve-
indirect (F&A) cost rates described in Sec- ments and equipment used in such buildings,
tion D, Simplified method for small institu- must be allocated to the individual functions
tions. performed in each building on the basis of
(5) Notwithstanding subsection (3), effec- usable square feet of space, excluding corn-
tive July 1,1998,a cost analysis or base other mon areas such as hallways, stairwells, and
than that in Section B must not be used to rest rooms.
distribute utility or student services costs. (3) Depreciation on buildings, capital im-
Instead, subsections B.4.c Operation and provements and equipment related to space
maintenance expenses, may be used in the (e.g., individual rooms, laboratories) used
recovery of utility costs. jointly by more than one function(as deter-
e.Order of distribution. mined by the users of the space) must be
(1)Indirect(F&A) costs are the broad cat- treated as follows. The cost of each jointly
egories of costs discussed in Section B.1, used unit of space must be allocated to bene-
Definitions of Facilities and Administration fitting functions on the basis of:
(2) Depreciation, interest expenses, oper- (a) The employee full-time equivalents
ation and maintenance expenses,and general (FTEs) or salaries and wages of those indi-
administrative and general expenses should vidual functions benefitting from the use of
be allocated in that order to the remaining that space;or
indirect (F&A) cost categories as well as to (b)Institution-wide employee FTEs or sal-
the major functions and specialized service aries and wages applicable to the benefitting
facilities of the institution. Other cost cat- major functions (see Section A.1) of the in-
egories may be allocated in the order deter- stitution.
mined to be most appropriate by the institu- (4) Depreciation on certain capital im-
tions.When cross allocation of costs is made Provements to land, such as paved parking
as provided in subsection(3),this order of al- areas,fences,sidewalks,and the like,not in-
location does not apply. eluded in the cost of buildings,must be allo-
(3) Normally an indirect (F&A) cost cat- cated to user categories of students and em-
egory will be considered closed once it has ployees on a full-time equivalent basis. The
been allocated to other cost objectives, and amount allocated to the student category
costs may not be subsequently allocated to must be assigned to the instruction function
it. However, a cross allocation of costs be- of the institution. The amount allocated to
tween two or more indirect (F&A) cost cat- the employee category must be further allo-
egories may be used if such allocation will cated to the major functions of the institu-
result in a more equitable allocation of tion in proportion to the salaries and wages
costs. If a cross allocation is used,an appro- of all employees applicable to those func-
priate modification to the composition of tions.
the indirect(F&A) cost categories described
in Section B is required. 3.Interest
B.IDENTIFICATION AND ASSIGNMENT OF Interest on debt associated with certain
INDIRECT AND SIGNSTS buildings, equipment and capital improve-
ments, as defined in §200.449 Interest, must
I.Definition of Facilities and Administration be classified as an expenditure under the cat-
egory Facilities. These costs must be allo-
See §200.414 Indirect (F&A) costs which cated in the same manner as the deprecia-
provides the basis for this indirect cost re- tion on the buildings, equipment and capital
quirements. improvements to which the interest relates.
2.Depreciation 4.Operation and Maintenance Expenses
a.The expenses under this heading are the a. The expenses under this heading are
portion of the costs of the institution's those that have been incurred for the admin-
buildings,capital improvements to land and istration, supervision, operation, mainte-
buildings, and equipment which are com- nance,preservation,and protection of the in-
puted in accordance with §200.436 Deprecia- stitution's physical plant. They include ex-
tion. penses normally incurred for such items as
b. In the absence of the alternatives pro- janitorial and utility services; repairs and
vided for in Section A.2.d, Selection of dis- ordinary or normal alterations of buildings,
tribution method, the expenses included in furniture and equipment; care of grounds;
this category must be allocated in the fol- maintenance and operation of buildings and
lowing manner: other plant facilities; security; earthquake
198
OMB Guidance Pt.200,App. III
and disaster preparedness; environmental 5.General Administration and General Expenses
safety; hasardous waste disposal; property, a. The expenses under this heading are
liability and all other insurance relating to those that have been incurred for the general
property; space and capital leasing; facility executive and administrative offices of edu-
planning and management; and central re- cational institutions and other expenses of a
ceiving. The operation and maintenance ex- general character which do not relate solely
pense category should also include its allo- to any major function of the institution;i.e.,
cable share of fringe benefit costs, deprecia- solely to (1) instruction, (2) organized re-
tion,and interest costs. search, (3) other sponsored activities, or (4)
b. In the absence of the alternatives pro- other institutional activities. The general
vided for in Section A.2.d, the expenses in- administration and general expense category
eluded in this category must be allocated in should also include its allocable share of
the same manner as described in subsection fringe benefit costs, operation and mainte-
2.b for depreciation. nance expense, depreciation, and interest
c. A utility cost adjustment of up to 1.3 costs. Examples of general administration
percentage points may be included in the ne- and general expenses include: those expenses
gotiated indirect cost rate of the IHE for or- incurred by administrative offices that serve
ganised research,per the computation alter- the entire university system of which the in-
natives in paragraphs (c)(1) and (2) of this stitution is a part; central offices of the in-
section: stitution such as the President's or
(1)Where space is devoted to a single func- Chancellor's office, the offices for institu-
tion and metering allows unambiguous meas- tion-wide financial management, business
urement of usage related to that space,costs services, budget and planning, personnel
must be assigned to the function located in management, and safety and risk manage-
that space. ment;the office of the General Counsel; and
(2) Where space is allocated to different the operations of the central administrative
functions and metering does not allow unam- management information systems. General
biguous measurement of usage by function, administration and general expenses must
must be allocated as follows: not include expenses incurred within non-
costsde-
(i)Utilities costs should be apportioned to university-wide deans' offices, academic fu in the same manner as deprecia-to partments,organized research units,or simi-
tion, based on the calculated difference be- lap Doepartmental
lad units.i (See subsection 6,
tween the site or building actual square foot- Departmental administration expenses.)
b. In the absence of the alternatives pro-
age for monitored research laboratory space vided for in Section A.2.d, the expenses in-
(site, building, floor, or room), and a sepa- eluded in this category must be grouped first
rate calculation prepared by the INF using according to common major functions of the
the "effective square footage" described in institution to which they render services or
subsection(c)(2)(ii)of this section. provide benefits. The aggregate expenses of
(ii)"Effective square footage"allocated to each group must then be allocated to serv-
research laboratory space must be calculated iced or benefitted functions on the modified
as the actual square footage times the rel- total cost basis. Modified total costs consist
ative energy utilization index(REUI)posted of the same elements as those in Section C.2.
on the OMB Web site at the time of a rate When an activity included in this indirect
determination. (F&A) cost category provides a service or
A. This index is the ratio of a laboratory product to another institution or organiza-
energy use index (lab EUI) to the cor- tion, an appropriate adjustment must be
responding index for overall average college made to either the expenses or the basis of
or university space(college EUI). allocation or both,to assure a proper alloca-
B.In July 2012,values for these two indices tion of costs.
(taken respectively from the Lawrence 6.Departmental Administration Expenses
Berkeley Laboratory"Labs for the 21st Cen-
tury" benchmarking tool http:// a. The expenses under this heading are
labs2lbenchmarking.lbl.gov/CompareData.php those that have been incurred for adminis-
and the US Department of Energy "Build- trative and supporting services that benefit
ings Energy Databook" and http:// common or joint departmental activities or
buildingsdatabook.eren.doe.gov/CBECS.aspx) objectives in academic deans' offices, aca-
were 310 kBtu/sq ft-yr.and 155 kBtu/sq ft-yr., demic departments and divisions, and orga-
so that the adjustment ratio is 2.0 by this sized research units. Organized research
methodology. To retain currency, OMB will units include such units as institutes,study
adjust the EUI numbers from time to time centers, and research centers. Departmental
(no more often than annually nor less often administration expenses are subject to the
than every 5 years), using reliable and pub- following limitations.
holy disclosed data. Current values of both (1) Academic deans' offices. Salaries and
the EUIs and the REUI will be posted on the operating expenses are limited to those at-
OMB Web site. tributable to administrative functions.
199
Pt.200,App. III 2 CFR Ch. I1 (1-1-14 Edition)
(2)Academic departments: c. In the absence of the alternatives pro-
(a) Salaries and fringe benefits attrib- vided for in.Section A.2.d, the expenses in-
utable to the administrative work(including eluded in this category must be allocated as
bid and proposal preparation) of faculty(in- follows:
eluding department heads)and other profes- (1) The administrative expenses of the
sional personnel conducting research and/or' dean's office of each college and school must
instruction,must be allowed at a rate of 3.6 be allocated to the academic departments
percent of modified total direct costs. This within that college or school on the modified
category does not include professional busi- total cost basis.
ness or professional administrative officers. (2) The administrative expenses of each
This allowance must be added to the corn- academic department, and the department's
potation of the indirect (F&A) cost rate for share of the expenses allocated in subsection
major functions in Section C,Determination (1)must be allocated to the appropriate funs-
' and application of indirect (F&A) cost rate tions of the department on the modified
or rates; the expenses covered by the allow- total cost basis.
ance must be excluded from the depart-
mental administration cost pool. No docu- 7.Sponsored Projects Administration
mentation is required to support this allow- a.The expenses under this heading are lim-
ance. ited to those incurred by a separate organi-
(b) Other administrative and supporting zation(s)established primarily to administer
expenses incurred within academic depart- sponsored projects, including such functions
ments are allowable provided they are treat- as grant and contract administration (Fed-
ed consistently in like circumstances. This eral and non-Federal), special security, pur-
would include expenses such as the salaries chasing,personnel,administration,and edit-
of secretarial and clerical staffs,the salaries ing and publishing of research and other re-
of administrative officers and assistants, ports.They include the salaries and expenses
travel, office supplies, stockrooms, and the of the head of such organization, assistants,
like. and immediate staff,together with the sala-
(3)Other fringe benefit costs applicable to ries and expenses of personnel engaged in
the salaries and wages included in sub- supporting activities maintained by the or-
sections(1) and (2) are allowable, as well as ganization,such as stock rooms,print shops,
an appropriate share of general administra- and the like.This category also includes an
tion and general expenses, operation and allocable share of fringe benefit costs, gen-
maintenance expenses,and depreciation. eral administration and general expenses,
(4) Federal agencies may authorize reim- operation and maintenance expenses,and de-
bursement of additional costs for department predation. Appropriate adjustments will be
heads and faculty only in exceptional cases made for services provided to other functions
where an institution can demonstrate undue or organizations.
hardship or detriment to project perform- b. In the absence of the alternatives pro-
ance. vided for in Section A.2.d, the expenses in-
b.The following guidelines apply to the de- eluded in this category must be allocated to
termination of departmental administrative the major functions of the institution under
costs as direct or indirect(F&A)costs. which the sponsored projects are conducted
(1) In developing the departmental admin- on the basis of the modified total cost of
istration cost pool,special care should be ex- sponsored projects.
excised to ensure that costs incurred for the c. An appropriate adjustment must be
same purpose in like circumstances are made to eliminate any duplicate charges to
treated consistently as either direct or indi- Federal awards when this category includes
rect (F&A) costs. For example, salaries of similar or identical activities as those in-
technical staff, laboratory supplies (e.g., eluded in the general administration and
chemicals), telephone toll charges, animals, general expense category or other indirect
animal care costs, computer costs, travel (F&A) cost items, such as accounting, pro-
costs, and specialized shop costs must be curement,or personnel administration.
treated as direct costs wherever identifiable 8.Library Expenses
to a particular cost objective. Direct charg-
ing of these costs may be accomplished a. The expenses under this heading are
through specific identification of individual those that have been incurred for the oper-
costs to benefitting cost objectives, or ation of the library, including the cost of
through recharge centers or specialized serv- books and library materials purchased for
ice facilities, as appropriate under the cir- the library,less any items of library income
cumstances. See§§200.413 Direct costs, para- that qualify as applicable credits under
graph (c) and 200.468 Specialized service fa- §200.406 Applicable credits. The library ex-
cilities. pense category should also include the fringe
(2) Items such as office supplies, postage, benefits applicable to the salaries and wages
local telephone costs,and memberships must included therein, an appropriate share of
normally be treated as indirect(F&A)costs. general administration and general expense,
200
OMB Guidance Pt.200,App. III
operation and maintenance expense, and de- struction function,and subsequently to Fed-
preciation. Costs incurred in the purchases eral awards in that function.
of rare books (museum-type books) with no
value to Federal awards should not be allo- 10. Offset for Indirect (F&A) Expenses Other-
cated to them. wise Provided for by the Federal Govern-
b. In the absence of the alternatives pro- ment
vided for in Section A.2.d, the expenses in- a.The items to be accumulated under this
cluded in this category must be allocated heading are the reimbursements and other
first on the basis of primary categories of payments from the Federal government
users, including students, professional em- which are made to the institution to support
ployees,and other users. solely,specifically,and directly,in whole or
(1) The student category must consist of in part,any of the administrative or service
full-time equivalent students enrolled at the activities described in subsections 2 through
institution, regardless of whether they earn 9.
credits toward a degree or certificate. b.The items in this group must be treated
(2) The professional employee category as a credit to the affected individual indirect
must consist of all faculty members and (F&A) cost category before that category is
other professional employees of the institu- allocated to benefitting functions.
tion, on a full-time equivalent basis. This
category may also include post-doctorate C.DETERMINATION AND APPLICATION OF
fellows and graduate students. INDIRECT(F&A)CosT RATE OR RATES
(3) The other users category must consist 1.Indirect(F&A)Cost Pools
of a reasonable factor as determined by insti-
tutional records to account for all other a. (1)Subject to subsection b, the separate
users of library facilities. categories of indirect (F&A) costs allocated
c.Amount allocated in paragraph b of this to each major function of the institution as
section must be assigned further as follows: prescribed in paragraph B of this paragraph
(1) The amount in the student category C.1 Identification and assignment of indirect
must be assigned to the instruction function (F&A)costs,must be aggregated and treated
of the institution. as a common pool for that function. The
(2) The amount in the professional em- amount in each pool must be divided by the
ployee category must be assigned to the distribution base described in subsection 2 to
major functions of the institution in propor- arrive at a single indirect(F&A)cost rate for
tion to the salaries and wages of all faculty each function.
members and other professional employees (2) The rate for each function is used to
applicable to those functions. distribute indirect(F&A)costs to individual
(3)The amount in the other users category Federal awards of that function. Since a
must be assigned to the other institutional common pool is established for each major
activities function of the institution. function of the institution, a separate indi-
rect(F&A)cost rate would be established for
9.Student Administration and Services each of the major functions described in Sec-
tion A.1 under which Federal awards are Car-
a. The expenses under this heading are ried out.
those that have been incurred for the admin- (3) Each institution's indirect (F&A) cost
istration of student affairs and for services rate process must be appropriately designed
to students, including expenses of such ac- to ensure that Federal sponsors do not in
tivities as deans of students,admissions,reg- any way subsidize the indirect(F&A)costs of
istrar, counseling and placement services, other sponsors, specifically activities spon-
student advisers, student health and infir- sored by industry and foreign governments.
mary services, catalogs, and commence- Accordingly, each allocation method used to
ments and convocations. The salaries of identify and allocate the indirect(F&A)cost
members of the academic staff whose respon- pools, as described in Sections A.2, Criteria
sibilities to the institution require adminis- for distribution, and B.2 through B.9, must
trative work that benefits sponsored projects contain the full amount of the institution's
may also be included to the extent that the modified total costs or other appropriate
portion charged to student administration is units of measurement used to make the com-
determined in accordance with Subpart E— putations. In addition, the final rate dis-
Cost Principles of this Part. This expense tribution base(as defined in subsection 2)for
category also includes the fringe benefit each major function(organized research, in-
costs applicable to the salaries and wages in- struction, etc., as described in Section A.1,
eluded therein, an appropriate share of gen- Major functions of an institution)must con-
eral administration and general expenses, tain all the programs or activities which uti-
operation and maintenance, interest ex- lize the indirect (F&A) costs allocated to
pease,and depreciation. that major function.At the time an indirect
b. In the absence of the alternatives pro- (F&A) cost proposal is submitted to a cog-
vided for in Section A.2.d, the expenses in nizant agency for indirect costs, each insti-
this category must be allocated to the in- tution must describe the process it uses to
201
Pt.200, App. III 2 CFR Ch. II (1-1-14 Edition)
ensure that Federal funds are not used to 3.Negotiated Lump Sum for Indirect(F&A)
subsidize industry and foreign government Costs
funded programs. A negotiated fixed amount in lieu of indi-
b.In some instances a single rate basis for rect(F&A)costs may be appropriate for self-
use across the board on all work within a contained, off-campus, or primarily subcon-
major function at an institution may not be tracted activities where the benefits derived
appropriate. A single rate for research, for from an institution's indirect(F&A)services
example, might not take into account those cannot be readily determined. Such nego-
different environmental factors and other tiated indirect(F&A)costs will be treated as
conditions which may affect substantially an offset before allocation to instruction,or-
the indirect(F&A)costs applicable to a par- ganized research, other sponsored activities,
ticular segment of research at the institu- and other institutional activities. The base
tion. A particular segment of research may on which such remaining expenses are allo-
be that performed under a single sponsored cated should be appropriately adjusted.
agreement or it may consist of research
under a group of Federal awards performed 4.Predetermined Rates for Indirect(F&A)Costs
in a common environment. The environ- Public Law 87-638(76 Stat.437)as amended
mental factors are not limited to the phys- (41 U.S.C. 4708) authorizes the use of pre-
ical location of the work. Other important determined rates in determining the "indi-
factors are the level of the administrative rect costs" (indirect(F&A)costs)applicable
support required, the nature of the facilities under research agreements with educational
or other resources employed, the scientific institutions.The stated objectives of the law
cost-
disciplines or technical skills involved, the are to simplify the administration of arrangements used, or any type research and development contracts(in-
organizationalcombination thereof.If a particular segment teluding grants) with educational institu-
of a sponsored agreement is performed with- budgets,toand facilitate the preparationx of theiriou
in an environment which appears to generate and to permit moree expeditious
closeout of such contracts when the work is
a significantly different level of indirect completed. In view of the potential advan-
(F&A)costs,provisions should be made for a tages offered by this procedure, negotiation
separate indirect(F&A) cost pool applicable of predetermined rates for indirect (F&A)
to such work. The separate indirect (F&A) costs for a period of two to four years should
cost pool should be developed during the reg- be the norm in those situations where the
ular course of the rate determination process cost experience and other pertinent facts
and the separate indirect(F&A)cost rate re- available are deemed sufficient to enable the
salting therefrom should be utilized; pro- parties involved to reach an informed judg-
vided it is determined that (1) such indirect ment as to the probable level of indirect
(F&A) cost rate differs significantly from (F&A) costs during the ensiling accounting
that which would have been obtained under periods.
subsection a, and(2) the volume of work to 5.Negotiated Fixed Rates and Carry-Forward such rate would apply is material in
relation to other Federal awards at the insti- Provisions
tution. When a fixed rate is negotiated in advance
for a fiscal year (or other time period), the
2.The Distribution Basis over-or under-recovery for that year may be
Indirect(F&A)costs must be distributed to included as an adjustment to the indirect
applicable Federal awards and other benefit- (F&A) cost for the neat rate negotiation.
Ling activities within each major function When the rate is negotiated before the carry-
(seecarry-
section A.l,Major functions of an insti- forward adjustment is determined,the forward amount may be applied to the next
tution) on the basis of modified total direct subsequent rate negotiation. When such ad-
costs (MTDC), consisting of all salaries and
wages, fringe benefits, materials and sup- gotiated
is advanceare o b made,giveneach fixed period rate nee
plies,services,travel,and subgrants and sub- comput in byly for a exp will be
contracts up to the first $25,000 of each computedapplying the expected a indirectr
or
subaward (regardless of the period covered the forecast costs period plusle t orF minus awards the period the carry-
by the subaward).MTDC is defined in§200.68 forward adjustment(over-or under-recovery)
Modified Total Direct Cost(MTDC).For this from the prior period, to the forecast dis-
purpose, an indirect (F&A) cost rate should tribution base. Unrecovered amounts under
be determined for each of the separate indi- lump-sum agreements or cost-sharing provi-
rect(F&A)cost pools developed pursuant to sions of prior years must not be carried for-
subsection 1.The rate in each case should be ward for consideration in the new rate nego-
stated as the percentage which the amount tiation.There must,however,be an advance
of the particular indirect (F&A)cost pool is understanding in each case between the in-
of the modified total direct costs identified stitution and the cognizant agency for indi-
with such pool. rect costs as to whether these differences
202
OMB Guidance Pt.200,App. III
will be considered in the rate negotiation Federal government at the time of an award
rather than making the determination after (because the educational institution is a new
the differences are known. Further, institu- recipient or the parties cannot reach agree-
tions electing to use this carry-forward pro- ment on a rate), the provisional rate used at
vision may not subsequently change without the time of the award must be adjusted once
prior approval of the cognizant agency for a rate is negotiated and approved by the cog-
indirect costs. In the event that an institu- nizant agency for indirect costs.
tion returns to a post-determined rate, any
over-or under-recovery during the period in 8.Limitation on Reimbursement of
which negotiated fixed rates and carry-for- Administrative Costs
ward provisions were followed will be in-
cluded in the subsequent post-determined a. Notwithstanding the provisions of sub-
rates. Where multiple rates are used, the section C.l.a, the administrative costs
same procedure will be applicable for deter- charged to Federal awards awarded or
mining each rate. amended (including continuation and re-
newal awards)with effective dates beginning
6.Provisional and Final Rates for Indirect on or after the start of the institution's first
(F&A)Costs fiscal year which begins on or after October
Where the cognizant agency for indirect 1, 1991, must be limited to 26% of modified
costs determines that cost experience and total direct costs(as defined in subsection 2)
other pertinent facts do not justify the use for the total of General Administration and
of predetermined rates, or a fixed rate with General Expenses, Departmental Adminis-
a carry-forward, or if the parties cannot tration, Sponsored Projects Administration,
agree on an equitable rate,a provisional rate and Student Administration and Services
must be established. To prevent substantial (including their allocable share of deprecia-
overpayment or underpayment, the provi- tion, interest costs, operation and mainte-
sional rate may be adjusted by the cognizant nance expenses, and fringe benefits costs, as
agency for indirect costs during the institu- provided by Section B,Identification and as-
tion's fiscal year. Predetermined or fixed signment of indirect (F&A) costs, and all
rates may replace provisional rates at any other types of expenditures not listed spe-
time prior to the close of the institution's cifically under one of the subcategories of fa-
fiscal year. If a provisional rate is not re- cilitiesin Section B.
placed by a predetermined or fixed rate prior
to the end of the institution's fiscal year, a b. Institutions should not change their ac-
final rate will be established and upward or counting or cost allocation methods if the ef-
downward adjustments will be made based on feet is to change the charging of a particular
the actual allowable costs incurred for the type of cost from F&A to direct,or to reclas-
period involved. sify costs, or increase allocations from the
administrative pools identified in paragraph
7.Fixed Rates for the Life of the Sponsored B.1 of this Appendix to the other F&A cost
Agreement pools or fringe benefits. Cognizant agencies
Federal agencies must use the negotiated for indirect cost are authorized to allow
rates except as provided in paragraph (e) of changes where an institution's charging
§200.414 Indirect (F&A) costs, must para- practices are at variance with acceptable
graph(b)(1)for indirect(F&A)costs in effect practices followed by a substantial majority
at the time of the initial award throughout of other institutions.
the life of the Federal award. Award levels
for Federal awards may not be adjusted in 9.Alternative Method for Administrative Costs
future years as a result of changes in nego- a. Notwithstanding the provisions of sub-
tiated rates. "Negotiated rates"per the rate section l.a,an institution may elect to claim
agreement include final,fixed, and predeter- a fixed allowance for the "Administration"
mined rates and exclude provisional rates. portion of indirect (F&A) costs. The allow-
"Life" for the purpose of this subsection ance could be either 24%of modified total di-
means each competitive segment of a rect costs or a percentage equal to 95%of the
project.A competitive segment is a period of
years approved by the Federal awarding most recently negotiated fixed or predeter-
agency at the time of the Federal award. If mined rate for the cost pools included under
negotiated rate agreements do not extend "Administration" as defined in Section B.1,
through the life of the Federal award at the whichever is less.Under this alternative, no
time of the initial award, then the nego- cost proposal need be prepared for the "Ad-
tiated rate for the last year of the Federal ministration" portion of the indirect (F&A)
award must be extended through the end of cost rate nor is further identification or doc-
the life of the Federal award. umentation of these costs required(see sub-
b. Except as provided in §200.414 Indirect section c). Where a negotiated indirect
(F&A)costs,when an educational institution (F&A) cost agreement includes this alter-
does not have a negotiated rate with the native,an institution must make no further
203
Pt.200,App. III 2 CFR Ch. II (1-1-14 Edition)
charges for the expenditure categories de- cided based on mutual agreement between
scribed in Section B.5, General administra- HES and DOD.
tion and general expenses, Section B.6, De- (2)After cognizance is established,it must
partmental administration expenses,Section continue for a five-year period.
B.7, Sponsored projects administration, and b. Acceptance of rates. See §200.414 Indi-
Section B.9, Student administration and rect(F&A)costs.
services. c. Correcting deficiencies. The cognizant
b. In negotiations of rates for subsequent agency for indirect costs must negotiate
periods, an institution that has elected the changes needed to correct systems deli-
option of subsection a may continue to exer- ciencies relating to accountability for Fed-
cise it at the same rate without further iden- eral awards. Cognizant agencies for indirect
tification or documentation of costs. costs must address the concerns of other af-
t. If an institution elects to accept a fected agencies,as appropriate,and must ne-
threshold rate as defined in subsection a of gotiate special rates for Federal agencies
this section, it is not required to perform a that are required to limit recovery of indi-
detailed analysis of its administrative costs. rect costs by statute.
However, in order to compute the facilities d. Resolving questioned costs. The cog-
components of its indirect (F&A) cost rate, nizant agency for indirect costs must con-
the institution must reconcile its indirect duct any necessary negotiations with an edu-
(F&A) cost proposal to its financial state- cational institution regarding amounts ques-
ments and make appropriate adjustments tioned by audit that are due the Federal gov-
and reclassifications to identify the costs of ernment related to costs covered by a nego-
each major function as defined in Section tiated agreement.
A.1,as well as to identify and allocate the fa- e.Reimbursement. Reimbursement to cog-
cilities components. Administrative costs nizant agencies for indirect costs for work
that are not identified as such by the insti- performed under this Part may be made by
tution's accounting system(such as those in- reimbursement billing under the Economy
curred in academic departments) will be Act,31 U.S.C.1535.
classified as instructional costs for purposes f. Procedure for establishing facilities and
of reconciling indirect (F&A) cost proposals administrative rates must be established by
to financial statements and allocating facili- one of the following methods:
ties costs. (1) Formal negotiation. The cognizant
10.Individual Rate Components agency for indirect costs is responsible for
negotiating and approving rates for an edu-
In order to provide mutually agreed-upon cational institution on behalf of all Federal
information for management purposes, each agencies.Non-cognizant Federal agencies for
indirect (F&A) cost rate negotiation or de- indirect costs, which make Federal awards
termination shall include development of a to an educational institution, must notify
rate for each indirect(F&A)cost pool as well the cognizant agency for indirect costs of
as the overall indirect(F&A)cost rate. specific concerns (i.e., a need to establish
special cost rates)which could affect the ne-
11.Negotiation and Approval of Indirect(F&A) gotiation process. The cognizant agency for
Rate indirect costs must address the concerns of
a. Cognizant agency for indirect costs is all interested agencies, as appropriate. A
defined in Subpart A—Acronyms and Defini- pre-negotiation conference may be scheduled
tions. among all interested agencies, if necessary.
(1)Cost negotiation cognizance is assigned The cognizant agency for indirect costs must
to the Department of Health and Human then arrange a negotiation conference with
Services (HHS) or the Department of De- the educational institution.
fense's Office of Naval Research(DOD),nor- (2)Other than formal negotiation.The cog-
mally depending on which of the two agen- nizant agency for indirect costs and edu-
cies (HIS or DOD) provides more funds to cational institution may reach an agreement
the educational institution for the most re- on rates without a formal negotiation con-
cent three years. Information on funding ference; for example, through correspond-
must be derived from relevant data gathered ence or use of the simplified method de-
by the National Science Foundation.In cases scribed in this section D of this Appendix.
where neither HISS nor DOD provides Fed- g. Formalizing determinations and agree-
eral funding to an educational institution, ments. The cognizant agency for indirect
the cognizant agency for indirect costs as- costs must formalize all determinations or
signment must default to HHS. Notwith- agreements reached with an educational in-
standing the method for cognizance deter- stitution and provide copies to other agen-
mination described in this section, other ar- cies having an interest. Determinations
rangements for cognizance of a particular should include a description of any adjust-
educational institution may also be based in ments, the actual amount, both dollar and
part on the types of research performed at percentage adjusted,and the reason for mak-
the educational institution and must be de- ing adjustments.
204
OMB Guidance Pt.200,App. III
h. Disputes and disagreements. Where the are classified under the following titles or
cognizant agency for indirect costs is unable their equivalents:
to reach agreement with an educational in- (1) General administration and general ex-
stitution with regard to rates or audit reso- penses(exclusive of costs of student adminis-
lution, the appeal system of the cognizant tration and services, student activities, stu-
agency for indirect costs must be followed dent aid,and scholarships).
for resolution of the disagreement. (2)Operation and maintenance of physical
plant and depreciation(after appropriate ad-
12.Standard Format for Submission justment for costs applicable to other insti-
tutional activities).
For facilities and administrative (indirect (3)Library.
(F&A)) rate proposals, educational institu- (4) Department administration expenses,
tions must use the standard format, shown which will be computed as 20 percent of the
in section E of this appendix,to submit their salaries and expenses of deans and heads of
indirect (F&A) rate proposal to the cog- departments.
nizant agency for indirect costs. The cog- In those cases where expenditures classi-
nizant agency for inrirect costs may, on an fled under subsection (1) have previously
institution-by-institution basis,grant excep- been allocated to other institutional activi-
tions from all or portions of Part II of the ties, they may be included in the indirect
standard format requirement. This require- (F&A) cost pool. The total amount of sala-
ment does not apply to educational institu- ries and wages included in the indirect(F&A)
tions that use the simplified method for cal- cost pool must be separately identified.
culating indirect(F&A)rates,as described in c.Establish a salary and wage distribution
Section D of this Appendix. base,determined by deducting from the total
In order to provide mutually agreed upon of salaries and wages as established in sub-
information for management purposes, each section a from the amount of salaries and
F&A cost rate negotiation or determination wages included under subsection b.
must include development of a rate for each d. Establish the indirect (F&A) cost rate,
F&A cost pool as well as the overall F&A determined by dividing the amount in the in-
rate. direct (F&A)cost pool, subsection b, by the
amount of the distribution base, subsection
D.SIMPLIFIED METHOD FOR SMALL O.
INSTITUTIONS e.Apply the indirect(F&A)cost rate to di-
rect salaries and wages for individual agree-
1.General ments to determine the amount of indirect
a.Where the total direct cost of work cov- (F&A)costs allocable to such agreements.
ered by this Part at an institution does not 3.Simplified Procedure—Modified Total Direct
exceed$10 million in a fiscal year, the sim- Cost Base
plified procedure described in subsections 2 or 3 may be used in determining allowable a.Establish the total costs incurred by the
indirect (F&A) costs. Under this simplified institution for the base period.
procedure, the institution's most recent an- b. Establish an indirect (F&A) cost pool
nual financial report and immediately avail- consisting of the expenditures (exclusive of
able supporting information must be utilized capital items and other costs specifically
as a basis for determining the indirect(F&A) identified as unallowable)which customarily
cost rate applicable to all Federal awards. are classified under the following titles or
The institution may use either the salaries their equivalents:
and wages (see subsection 2) or modified (1) General administration and general ex-
total direct costs (see subsection 3) as the penses(exclusive of costs of student adminis-
distribution basis. tration and services, student activities, stu-
b. The simplified procedure should not be dent aid,and scholarships).
used where it produces results which appear (2) Operation and maintenance of physical
inequitable to the Federal government or the plant and depreciation(after appropriate ad-
institution.In any such case,indirect(F&A) justment for costs applicable to other insti-
costs should be determined through use of insti-
tutional activities).
(3)Library.
the regular procedure.
(4) Department administration expenses,
2.Simplified Procedure—Salaries and Wages which will be computed as 20 percent of the
Base salaries and expenses of deans and heads of
departments. In those cases where expendi-
a. Establish the total amount of salaries tures classified under subsection (1) have
and wages paid to all employees of the insti- previously been allocated to other institu-
tution. tional activities,they may be included in the
b. Establish an indirect (F&A) cost pool indirect(F&A)cost pool.The modified total
consisting of the expenditures (exclusive of direct costs amount included in the indirect
capital items and other costs specifically (F&A) cost pool must be separately identi-
identified as unallowable)which customarily fied.
205
Pt. 200, App. IV 2 CFR Ch. II (1-1-14 Edition)
c. Establish a modified total direct cost rates in accordance with the requirements of
distribution base, as defined in Section C.2, this section, the Federal government must
The distribution basis, that consists of all unilaterally establish such rates. Such rates
institution's direct functions. may be based upon audited historical data or
d. Establish the indirect (F&A) cost rate, such other data that have been furnished to
determined by dividing the amount in the in- the cognizant agency for indirect costs and
direct (F&A) cost pool, subsection b, by the for which it can be demonstrated that all un-
amount of the distribution base, subsection allowable costs have been excluded.When in-
c. direct(F&A) cost rates are unilaterally es-
e. Apply the indirect (F&A) cost rate to tablished by the Federal government because
the modified total direct costs for individual of failure of the institution to submit a cer-
agreements to determine the amount of indi- tified proposal for establishing such rates in
rect (F&A) costs allocable to such agree- accordance with this section, the rates es-
ments. tablished will be set at a level low enough to
ensure that potentially unallowable costs
E.DOCUMENTATION REQUIREMENTS will not be reimbursed.
The standard format for documentation re- c. Certificate. The certificate required by
quirements for indirect(indirect(F&A))rate this section must be in the following form:
proposals for claiming costs under the reg- ('ER1'iN'LCATE OF INDIRECT(F&A)COSTS
ular method is available on the OMB Web
site here: http://www.whitehouse.gov/omb/ This is to certify that to the best of my
grants_forms. knowledge and belief:
(1)I have reviewed the indirect(F&A)cost
F.CERTIFICATION proposal submitted herewith;
1.Certification of Charges (2)All costs included in this proposal[iden-
tify date] to establish billing or final indi-
To assure that expenditures for Federal rect (F&A) costs rate for [identify period
awards are proper and in accordance with covered by rate] are allowable in accordance
the agreement documents and approved with the requirements of the Federal agree-
project budgets, the annual and/or final fis- ment(s) to which they apply and with the
cal reports or vouchers requesting payment cost principles applicable to those agree-
under the agreements will include a certifi- ments.
cation, signed by an authorized official of (3)This proposal does not include any costs
the university,which reads "By signing this which are unallowable under applicable cost
report,I certify to the best of my knowledge principles such as(without limitation): pub-
and belief that the report is true, complete, lic relations costs, contributions and dona-
and accurate,and the expenditures,disburse- tions, entertainment costs, fines and pen-
ments and cash receipts are for the purposes alties, lobbying costs, and defense of fraud
and intent set forth in the award documents. proceedings;and
I am aware that any false, fictitious, or (4) All costs included in this proposal are
fraudulent information, or the omission of properly allocable to Federal agreements on
any material fact,may subject me to crimi- the basis of a beneficial or causal relation-
al, civil or administrative penalties for ship between the expenses incurred and the
fraud, false statements, false claims or oth- agreements to which they are allocated in
erwise. (U.S. Code,Title 18, Section 1001 and accordance with applicable requirements.
Title 31,Sections 3729-3733 and 3801-3812)". I declare that the foregoing is true and cor-
2.Certification of Indirect(F&A)Costs rect.
Institution of Higher Education:
a. Policy. Cognizant agencies must not ac- Signature:
cept a proposed indirect cost rate must un- Name of Official:
less such costs have been certified by the Title:
educational institution using the Certificate Date of Execution:
of indirect (F&A) Costs set forth in sub-
section F.2.c APPENDIX IV TO PART 200—INDIRECT
b.The certificate must be signed on behalf (F&A) COSTS IDENTIFICATION AND
of the institution by the chief financial offi- ASSIGNMENT, AND RATE DETERMINA-
cer or an individual designated by an indi- TION FOR NONPROFIT ORGANIZA-
vidual at a level no lower than vice president
or chief financial officer. TIONS
(1) No indirect (F&A) cost rate must be A.GENERAL,
binding upon the Federal government if the
most recent required proposal from the insti- 1. Indirect costs are those that have been
tution has not been certified. Where it is incurred for common or joint objectives and
necessary to establish indirect (F&A) cost cannot be readily identified with a par-
rates, and the institution has not submitted ticular final cost objective. Direct cost of
a certified proposal for establishing such minor amounts may be treated as indirect
206
OMB Guidance Pt.200,App. IV
costs under the conditions described in rating the organization's total costs for the
§200.413 Direct costs paragraph (d) of this base period as either direct or indirect, and
Part. After direct costs have been deter- (ii) dividing the total allowable indirect
mined and assigned directly to awards or costs (net of applicable credits) by an equi-
other work as appropriate,indirect costs are table distribution base. The result of this
those remaining to be allocated to benefit- process is an indirect cost rate which is used
ting cost objectives.A cost may not be allo- to distribute indirect costs to individual
cated to a Federal award as an indirect cost Federal awards.The rate should be expressed
if any other cost incurred for the same pur- as the percentage which the total amount of
pose, in like circumstances, has been as- allowable indirect costs bears to the base se-
signed to a Federal award as a direct cost. lected. This method should also be used
"Major nonprofit organizations" are de- where an organization has only one major
fined in§200.414 Indirect(F&A)costs. See in- function encompassing a number of indi-
direct cost rate reporting requirements in vidual projects or activities, and may be
sections B.2.e and B.3.g of this Appendix. used where the level of Federal awards to an
organization is relatively small.
B.ALLOCATION OF INDIRECT COSTS AND
DETERMINATION OF INDIRECT COST RATES b. Both the direct costs and the indirect
costs must exclude capital expenditures and
1.General unallowable costs. However, unallowable
costs which represent activities must be in-
a. If a nonprofit organization has only one eluded in the direct costs under the condi-
major function, or where all its major func- tions described in§200.413 Direct costs,parti-
tions benefit from its indirect costs to ap- graph(e)of this Part.
proximately the same degree, the allocation c. The distribution base may be total di-
of indirect costs and the computation of an rect costs (excluding capital expenditures
indirect cost rate may be accomplished and other distorting items,such contracts or
through simplified allocation procedures, as subawards for $25,000 or more), direct sala-
described in section B.2 of this Appendix. ries and wages,or other base which results in
b. If an organization has several major an equitable distribution. The distribution
functions which benefit from its indirect base must exclude participant support costs
costs in varying degrees, allocation of indi- as defined in §200.75 Participant support
rect costs may require the accumulation of costs.
such costs into separate cost groupings d. Except where a special rate(s) is re-
which then are allocated individually to ben- quired in accordance with section B.5 of this
efitting functions by means of a base which Appendix, the indirect cost rate developed
best measures the relative degreeof benefit. under the above principles is applicable to
The indirect costs allocated to eachhfunctionn all Federal awards of the organization. If a
are then distributed to individual Federal special rate(s)is required, appropriate modi-
awards and other'activities included in that ficationa must be made in order to develop
function by means of an indirect cost rate(s). the special rate(s).
c. The determination of what constitutes e. For an organization that receives more
pendan organization'sontspurpose major being;functions will de- than$10 million in Federal funding of direct
on its in the types of
services it renders to the public, its clients, costs in a fiscal year,a breakout of the indi-
and its members;and the amount of effort it rect cost component into two broad cat-
devotes to such activities as fundraising, egories,Facilities and Administration as de-
public information and membership activi- fined in section A.3 of this Appendix, is re-
ties. quired.The rate in each case must be stated
d. Specific methods for allocating indirect as the percentage which the amount of the
costs and computing indirect cost rates particular indirect cost category(i.e.,Facili-
along with the conditions under which each ties or Administration)is of the distribution
method should be used are described in sec- base identified with that category.
tion B.2 through B.5 of this Appendix. 3.Multiple Allocation Base Method
e.The base period for the allocation of in-
direct costs is the period in which such costs a. General. Where an organization's indi-
are incurred and accumulated for allocation rect costs benefit its major functions in
to work performed in that period. The base varying degrees,indirect costs must be accu-
period normally should coincide with the or- mulated into separate cost groupings, as de-
ganization's fiscal year but, in any event, scribed in subparagraph b. Each grouping
must be so selected as to avoid inequities in must then be allocated individually to bene-
the allocation of the costs. fitting functions by means of a base which
Simplified Allocation Method best measures the relative benefits. The de-
2. fault allocation bases by cost pool are de-
a.Where an organization's major functions scribed in section B.3.c of this Appendix.
benefit from its indirect costs to approxi- b. Identification of indirect costs. Cost
mately the same degree,the allocation of in- groupings must be established so as to per-
direct costs may be accomplished by(i)sepa- mit the allocation of each grouping on the
207
Pt. 200, App. IV 2 CFR Ch.II (1-1-14 Edition)
basis of benefits provided to the major func- services costs must be treated as direct costs
tions. Each grouping must constitute a pool wherever identifiable to a particular pro-
of expenses that are of like character in gram.The salaries and wages of administra-
terms of functions they benefit and in terms tive and pooled clerical staff should nor-
of the allocation base which best measures mally be treated as indirect costs. Direct
the relative benefits provided to each func- charging of these costs may be appropriate
tion.The groupings are classified within the where a major project or activity explicitly
two broad categories: "Facilities"and"Ad- requires and budgets for administrative or
ministration," as described in section A.3 of clerical services and other individuals in-
this Appendix.The indirect cost pools are de- volved can be identified with the program or
fined as follows: activity.Items such as office supplies, post-
(1) Depreciation. The expenses under this age, local telephone costs, periodicals and
heading are the portion of the costs of the memberships should normally be treated as
organization's buildings, capital improve- indirect costs.
ments to land and buildings, and equipment c. Allocation bases. Actual conditions
which are computed in accordance with must be taken into account in selecting the
§200.436 Depreciation. base to be used in allocating the expenses in
(2) Interest. Interest on debt associated each grouping to benefitting functions. The
with certain buildings, equipment and cap- essential consideration in selecting a method
ital improvements are computed in accord- or a base is that it is the one best suited for
ance with§200.449 Interest. assigning the pool of costs to cost objectives
(3) Operation and maintenance expenses. in accordance with benefits derived;a trace-
The expenses under this heading are those able cause and effect relationship; or logic
that have been incurred for the administra- and reason, where neither the cause nor the
tion, operation, maintenance, preservation, effect of the relationship is determinable.
and protection of the organization's physical When an allocation can be made by assign-
plant. They include expenses normally in- went of a cost grouping directly to the func-
curred for such items as:janitorial and util- tion benefitted,the allocation must be made
ity services; repairs and ordinary or normal in that manner.When the expenses in a cost
alterations of buildings,furniture and equip- grouping are more general in nature,the al-
ment; care of grounds; maintenance and op- location must be made through the use of a
eration of buildings and other plant facili- selected base which produces results that are
ties; security; earthquake and disaster pre- equitable to both the Federal government
paredness; environmental safety; hazardous and the organization.The distribution must
waste disposal; property, liability and other be made in accordance with the bases de-
insurance relating to property; space and scribed herein unless it can be demonstrated
capital leasing; facility planning and man- that the use of a different base would result
agement; and central receiving. The oper- in a more equitable allocation of the costs,
ation and maintenance expenses category or that a more readily available base would
must also include its allocable share of not increase the costs charged to Federal
fringe benefit costs, depreciation, and inter- awards. The results of special cost studies
eat costs. (such as an engineering utility study) must
(4) General administration and general ex- not be used to determine and allocate the in-
penses. The expenses under this heading are direct costs to Federal awards.
those that have been incurred for the overall (1) Depreciation. Depreciation expenses
general executive and administrative offices must be allocated in the following manner:
of the organization and other expenses of a (a) Depreciation on buildings used exclu-
general nature which do not relate solely to sively in the conduct of a single function,
any major function of the organization.This and on capital improvements and equipment
category must also include its allocable used in such buildings, must be assigned to
share of fringe benefit costs, operation and that function.
maintenance expense, depreciation, and in- (b)Depreciation on buildings used for more
terest costs. Examples of this category in- than one function, and on capital improve-
elude central offices, such as the director's ments and equipment used in such buildings,
office, the office of finance, business serv- must be allocated to the individual functions
ices, budget and planning, personnel, safety performed in each building on the basis of
and risk management,general counsel,man- usable square feet of space, excluding coin-
agement information systems, and library mon areas,such as hallways,stairwells, and
costs. restrooms.
In developing this cost pool, special care (c) Depreciation on buildings, capital im-
should be exercised to ensure that costs in- provements and equipment related space
tuned for the same purpose in like cir- (e.g., individual rooms, and laboratories)
cumstances are treated consistently as ei- used jointly by more than one function (as
ther direct or indirect costs. For example, determined by the users of the space) must
salaries of technical staff, project supplies, be treated as follows.The cost of each joint-
project publication, telephone toll charges, ly used unit of space must be allocated to
computer costs, travel costs, and specialized the benefitting functions on the basis of:
208
OMB Guidance Pt.200,App. IV
(i)the employees and other users on a full- common pool for that function.The costs in
time equivalent (FTE) basis or salaries and the common pool must then be distributed to
wages of those individual functions benefit- individual Federal awards included in that
ting from the use of that space;or function by use of a single indirect cost rate.
(ii) organization-wide employee FTEs or f. Distribution basis. Indirect costs must
salaries and wages applicable to the benefit- be distributed to applicable Federal awards
ting functions of the organization. and other benefitting activities within each
(d) Depreciation on certain capital im- major function on the basis of MTDC (see
provements to land, such as paved parking definition in §200.68 Modified Total Direct
areas,fences,sidewalks,and the like,not in- Cost(AMC)of Part 200.
eluded in the cost of buildings,must be allo- g. Individual Rate Components. An indi-
cated to user categories on a FI'E basis and rect cost rate must be determined for each
distributed to major functions in proportion separate indirect cost pool developed. The
to the salaries and wages of all employees rate in each case must be stated as the per-
applicable to the functions. centage which the amount of the particular
(2) Interest. Interest costs must be allo- indirect cost pool is of the distribution base
cated in the same manner as the deprecia- identified with that pool. Each indirect cost
tion on the buildings,equipment and capital rate negotiation or determination agreement
equipment to which the interest relates. must include development of the rate for
(3) Operation and maintenance expenses. each indirect cost pool as well as the overall
Operation and maintenance expenses must indirect cost rate. The indirect cost pools
be allocated in the same manner as the de- must be classified within two broad cat-
preciation. egories: "Facilities" and "Administration,"
(4) General administration and general ex- as described in section A.3 of this Appendix.
penses. General administration and general
expenses must be allocated to benefitting 4.Direct Allocation Method
functions based on modified total costs
(MTC).The MTC is the modified total direct a. Some nonprofit organizations treat all
costs (MTDC), as described in Subpart A— costs as direct costs except general adminis-
Acronyms and Definitions of Part 200, plus tration and general expenses. These organi-
the allocated indirect cost proportion. The zations generally separate their costs into
expenses included in this category could be three basic categories: (i) General adminis-
grouped first according to major functions of tration and general expenses, (ii) fund-
the organization to which they render serv- raising,and (iii) other direct functions (in-
ices or provide benefits. The aggregate ex- eluding projects performed under Federal
penses of each group must then be allocated awards). Joint costs, such as depreciation,
to benefitting functions based on MTC. rental costs, operation and maintenance of
d.Order of distribution. facilities, telephone expenses, and the like
(1) Indirect cost categories consisting of are prorated individually as direct costs to
depreciation,interest,operation and mainte- each category and to each Federal award or
nance, and general administration and gen- other activity using a base most appropriate
eral expenses must be allocated in that order to the particular cost being prorated.
to the remaining indirect cost categories as b.This method is acceptable,provided each
well as to the major functions of the organi- joint cost is prorated using a base which ac-
zation.Other cost categories should be allo- curately measures the benefits provided to
cated in the order determined to be most ap- each Federal award or other activity. The
propriate by the organization. This order of bases must be established in accordance with
allocation does not apply if cross allocation reasonable criteria,and be supported by cur-
of costs is made as provided in section B.3.d.2 rent data. This method is compatible with
of this Appendix. the Standards of Accounting and Financial
(2)Normally,an indirect cost category will Reporting for Voluntary Health and Welfare
be considered closed once it has been allo- Organizations issued jointly by the National
cated to other cost objectives, and costs Health Council,Inc.,the National Assembly
must not be subsequently allocated to it. of Voluntary Health and Social Welfare Or-
However,a cross allocation of costs between ganizations,and the United Way of America.
two or more indirect costs categories could c. Under this method, indirect costs con-
be used if such allocation will result in a sist exclusively of general administration
more equitable allocation of costs.If a cross and general expenses. In all other respects,
allocation is used, an appropriate modifica- the organization's indirect cost rates must
tion to the composition of the indirect cost be computed in the same manner as that de-
categories is required. scribed in section B.2 Simplified allocation
e. Application of indirect cost rate or method of this Appendix.
rates. Except where a special indirect cost 5.Special Indirect Cost Rates
rate(s)is required in accordance with section
B.5 of this Appendix,the separate groupings In some instances, a single indirect cost
of indirect costs allocated to each major rate for all activities of an organization or
function must be aggregated and treated as a for each major function of the organization
209
Pt.200,App. IV 2 CFR Ch.1I(1-1-14 Edition)
may not be appropriate, since it would not f. Indirect cost proposal means the docu-
take into account those different factors mentation prepared by an orgs.nisation to
which may substantially affect the indirect substantiate its claim for the reimbursement
costs applicable to a particular segment of of indirect costs. This proposal provides the
work.For this purpose,a particular segment basis for the review and negotiation leading
of work may be that performed under a sin- to the establishment of an organization's in-
gle Federal award or it may consist of work direct cost rate.
under a group of Federal awards performed g.Cost objective means a function,organiza-
in a common environment. These factors tional subdivision, contract, Federal award,
may include the physical location of the or other work unit for which cost data are
work,the level of administrative support re- desired and for which provision is made to
quired, the nature of the facilities or other accumulate and measure the cost of proc-
resources employed,the scientific disciplines esses,projects,jobs and capitalized projects.
or technical skills involved, the organiza-
tional arrangements used, or any combina- 2.Negotiation and Approval of Rates
tion thereof. When a particular segment of a. Unless different arrangements are
work is performed in an environment which agreed to by the Federal agencies concerned,
appears to generate a significantly different the Federal agency with the largest dollar
level of indirect costs, provisions should be value of Federal awards with an organization
made for a separate indirect cost pool appli- will be designated as the cognizant agency
cable to such work. The separate indirect for indirect costs for the negotiation and ap-
cost pool should be developed during the proval of the indirect cost rates and, where
course of the regular allocation process, and necessary, other rates such as fringe benefit
the separate indirect cost rate resulting and computer charge-out rates. Once an
therefrom should be used, provided it is de- agency is assigned cognizance for a par-
termined that (i) the rate differs signifi- ticular nonprofit orga.niration, the assign-
cantly from that which would have been ob- ment will not be changed unless there is a
tamed under sections B.2,13.3,and B.4 of this shift in the dollar volume of the Federal
Appendix, and (fi) the volume of work to awards to the organization for at least three
which the rate would apply is material. years. All concerned Federal agencies must
C.NEGOTIATION AND APPROVAL OF INDIRECT be given the opportunity to participate in
COST RATES the negotiation process but, after a rate has
been agreed upon, it will be accepted by all
I.Definitions Federal agencies.When a Federal agency has
reason to believe that special operating fac-
As used in this section,the following terms tors affecting its Federal awards necessitate
have the meanings set forth in this section: special indirect cost rates in accordance
a. Cognizant agency for indirect costs means with section B.5 of this Appendix, it will,
the Federal agency responsible for negoti- prior to the time the rates are negotiated,
ating and approving indirect cost rates for a notify the cognizant agency for indirect
nonprofit organization on behalf of all Fed- costs. (See also§200.414 Indirect(F&A)costs
eral agencies. of Part 200.)
b.Predetermined rate means an indirect cost b. Except as otherwise provided in§200.414
rate, applicable to a specified current or fu- Indirect (F&A) costs paragraph (e) of this
tore period,usually the orga.niPation's fiscal Part,a nonprofit organization which has not
year.The rate is based on an estimate of the previously established an indirect cost rate
costs to be incurred during the period.A pre- with a Federal agency must submit its ini-
determined rate is not subject to adjust- tial indirect cost proposal immediately after
ment. the organization is advised that a Federal
c. Fixed rate means an indirect cost rate award will be made and, in no event, later
which has the same characteristics as a pre- than three months after the effective date of
determined rate, except that the difference the Federal award.
between the estimated costs and the actual c.Unless approved by the cognizant agency
costs of the period covered by the rate is car- for indirect costs in accordance with§200.414
ried forward as an adjustment to the rate Indirect (F&A) costs paragraph (f) of this
computation of a subsequent period. Part, organizations that have previously es-
d. Final rate means an indirect cost rate tablished indirect cost rates must submit a
applicable to a specified past period which is new indirect cost proposal to the cognizant
based on the actual costs of the period. A agency for indirect costs within six months
final rate is not subject to adjustment. after the close of each fiscal year.
e. Provisional rate or billing rate means a d.A predetermined rate may be negotiated
temporary indirect cost rate applicable to a for use on Federal awards where there is rea-
specified period which is used for funding,in- sonable assurance, based on past experience
termm reimbursement,and reporting indirect and reliable projection of the organization's
costs on Federal awards pending the estab- costs,that the rate is not likely to exceed a
lishment of a final rate for the period. rate based on the organization's actual costs.
210
OMB Guidance Pt. 200,App.V
e. Fixed rates may be negotiated where to which they apply and with Subpart E—
predetermined rates are not considered ap- Cost Principles of Part 200.
propriate.A fixed rate,however,must not be (3)This proposal does not include any costs
negotiated if(i) all or a substantial portion which are unallowable under Subpart E—
of the organization's Federal awards are ex- Cost Principles of Part 200 such as (without
petted to expire before the carry-forward ad- limitation): public relations costs, contribu-
justment can be made;(ii)the mix of Federal tions and donations, entertainment costs,
and non-Federal work at the organization is fines and penalties, lobbying costs, and de-
too erratic to permit an equitable carry-for- fense of fraud proceedings;and
ward adjustment; or (iii) the organization's (4) All costs included in this proposal are
operations fluctuate significantly from year properly allocable to Federal awards on the
to year. basis of a beneficial or causal relationship
f.Provisional and final rates must be nego- between the expenses incurred and the Fed-
tiated where neither predetermined nor fixed eral awards to which they are allocated in
rates are appropriate. Predetermined or accordance with applicable requirements.
fixed rates may replace provisional rates at I declare that the foregoing is true and cor-
any time prior to the close of the organize- rect.
tion's fiscal year. If that event does not
occur,a final rate will be established and up- Nonprofit Organization:
ward or downward adjustments will be made Signature:
based on the actual allowable costs incurred Name of Official:
for the period involved. Title:
g.The results of each negotiation must be Date of Execution:
formalized in a written agreement between
the cognizant agency for indirect costs and APPENDIX V TO PART 200—STATE/LOCAL
the nonprofit organization. The cognizant GOVERNMENT AND INDIAN TRIBE-
agency for indirect costs must make avail- WIDE CENTRAL SERVICE COST ALLO-
able copies of the agreement to all concerned CATION PLANS
Federal agencies.
h.If a dispute arises in a negotiation of an A.GENERAL
indirect cost rate between the cognizant
agency for indirect costs and the nonprofit 1.Most governmental units provide certain
organisation,the dispute must be resolved in services,such as motor pools,computer cen-
accordance with the appeals procedures of ters, purchasing, accounting, etc., to oper-
the cognizant agency for indirect costs. ating agencies on a centralized basis. Since
i.To the extent that problems are encoun- federally-supported awards are performed
tered among the Federal agencies in connec- within the individual operating agencies,
tion with the negotiation and approval proc- there needs to be a process whereby these
ess, OMB will lend assistance as required to central service costs can be identified and
resolve such problems in a timely manner. assigned to benefitted activities on a reason-
able and consistent basis.The central service
D.Certification of Indirect(F&A)Costs cost allocation plan provides that process.
Required Certification. No proposal to es- All costs and other data used to distribute
tablish indirect(F&A)cost rates must be ac- the costs included in the plan should be sup-
ceptable unless such costs have been cer- ported by formal accounting and other
tified by the non-profit organization using records that will support the propriety of the
the Certificate of Indirect (F&A) Costs set costs assigned to Federal awards.
forth in section j. of this appendix. The cer- 2. Guidelines and illustrations of central
tificate must be signed on behalf of the orga- service cost allocation plans are provided in
nization by an individual at a level no lower a brochure published by the Department of
than vice president or chief financial officer Health and Human Services entitled "A
for the organization. Guide for State, Local and Indian Tribal Gov-
j.Each indirect cost rate proposal must be ernments: Cost Principles and Procedures for
accompanied by a certification in the fol- Developing Cost Allocation Plans and Indirect
lowing form: Cost Rates for Agreements with the Federal
Government."A copy of this brochure may be
Certificate of Indirect(F&A)Costs obtained from the Superintendent of Docu-
This is to certify that to the best of my ments,U.S.Government Printing Office.
knowledge and belief: B.DEFINITIONS
(1)I have reviewed the indirect(F&A)cost
proposal submitted herewith; 1. Agency or operating agency means an or-
(2)All costs included in this proposal[iden- ganizational unit or sub-division within a
tify date] to establish billing or final indi- governmental unit that is responsible for the
rect (F&A) costs rate for [identify period performance or administration of Federal
covered by rate] are allowable in accordance awards or activities of the governmental
with the requirements of the Federal awards unit.
211
E x.-/-1 tb(1 C,
PARIS 200-214[RESERVED] 215.96 intangible property. •
M5.97 Property trust relationship.
•
PART 215-0NIFORM ADMINISTRA Paaoosranwr means
TiVE REAUSS YENS FOR GRAMS 215.40 Purpose.of procurement standards.
AND AG IS WITH BAST TU- 215.41 Recipient responedbdlitles.
110NS OF HIGHER EDUCATION, 215.42 Codes of Conduct.
HOSPITALS,,..AP :OMR NON- ' 215.43
6 444 Procurement procedures.
ORGANIZATIONS (OMB �915.45 Cost and price analysis.
CIRCULAR A-110) . 215.46 .Pioomrmeat records.
515:47 .Contract administration.
Sac MBA Contract provisions.
215.o About this part. RSPcers AND Mows
Subpart A--General 215.50 Purpoee.of reports and records.
215.51 Monitoring and reporting program
2151 215 2 iD 215.5 Financial reporting.
215.8 Hoot on.other issuances. 215101 Retention and access requirements
215.4 Deviaticros. •for records.
215.E Subacute.'
TERMINATION AND ENFORCEMENT
Srrbpat 8-Pre-Award Requiremerds 215.8o Purpose of termination and enforce-
ment.
215.10 Purpose. 215.61 Termination.
215.1.1 Pre-award poii1an • 215.62 Enforcement.
21512 Forms for applying for Federal assist-
Mee. Subpart D--Mthe-Award Requirements
sts u Debarment and suspension.
•
21514 Special award conditions. 215.70 Purpose.
215.15 Metric system of mkt. 2,15.71 Closeout procedures. •
21516 Resource Conservation and Recovery 215.72 Subsequent adjustments and eon_
Act. tinning responsibilities.
215.17 Certifications and representations. 215.73 causation of amounts due.
Subpart C--Post-Award R@gl wienis MONS
A TO PAST 2lb--ODNITAcr PaovI •
-
FINANcrAL AND PROGRAM MANAGEMENT Airy iul;rrz:81 U.S.O.508;31 U.S.C.1111;41
215.5) Purpose of financial and program U.S.C.405;Reorganization Plan No.2 of 1970;
E.O. 11541,95 FR 10797, 8 OFR, 1966-1970. p.
management.
215.21 Standards for financial management 939.
systems.. SOME:69 FR 21281. May 11,.2004, unless •
215.22 Payment. otherwise noted.
•
• 215.28 Cost sharing or matching.
215.24 Program income. §215.0 About this part.
215.25 Revision of budget and program (a) Purpose. This part contains OMB
'
plans
21526 Non-Federal audits. guidance to Federal agencies on the ad-
21527 Allowable costs. ministration of grants to and agree-
215.26 Period of availability of fends. meats with institutions of higher edn-
21519 Conditional exemptions. cation, hospitals, and other non-profit
PROPERTY STANDARDS organizations. The guidance sets forth
standards for obtaining consistency
215.30 Purpose of property standards. and uniformity in the agencies' adman-
215.81 Insurance coverage. istration of those grants and agree •
-
215.58 Real property.• monts.
215.33 Federally-owned and exempt prop- (b) Applicability. (1) Except as pro_215.Epnisnt. vided herein,the standards set forth in
215.85 Supplies and other expendable prop- this part are applicable to all Federal
arty. agencies. If any statute specifically
77
$215.1 2 CFR Ch.U(1-1-12 Edition)
prescribes policies or specific require- where adequate justification is pre-
ments that differ from the standards sented. .
provided in this part, the provisions of (5) Conducting broad oversight of
• the statute shall govern. • government-wide compliance with the
(2) The provisions of subparts A guidance in this part.
through D of this part shall be applied (d)peal agency responsibilities. The
by Federal agencies to recipients. Re- head of each Federal agency that
oipfents shall apply the provisions of awards and administers grants and
those subparts to subreoipients per- agreements subject to the guidance in
forming substantive work under grants this part is responsible for:
and agreements. that .are passed (1). bnplementing the guidance in
through or awarded by the laimarY re-. subparts A through D of this part by •
oipient, if such sabrecipients are organ adopting the language in those sub-
nisations described in paragraph(a)of 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 cam
contracts, or other agreements be- (2) Ensuring that the agency's com-
tween the Federal Government and pests and subcomponents comply
• nits of State or local governments with the agency's implementation of
covered by OMB Circular A-102, the guidance in subparts A through D
"Grants and Cooperative Agreements o f this per.
with State and Local Governments"1 (g) Requesting approval from O1dB
and the Federal agencies' grants man- for deviations from the guidance in
agement common race (see Salad) subpartsA through D of this part in
which standardise the administrative situations where the guidance requires
requirements Federal agencies impose that approval.
on State and local grantees. In addi- (4)pig other functions speci
tion,subawards and contracts to State Red in this part.
or local governments are not covered (e).Relationship to previous issuance.
bo this Part.
made However,this part applies The guidance in this part previously
by State and local was issued as OMB Circular A-11A.Sub-
governments to organizations covered
by this part. parts A through D of this part contain
the the guidance that was in the attach
(4) Federal agencies may apply
provisions of subparts A through D of tent to the OMB circular.Appendix A
this part to commercial organisations, containsthe guidancethat
foreign governments, organisations was
this part f in the appendix to thee attachh ment.
under the jnrisdicti of fgreiga goy- information Contact.Farther nf -
and international organize- mat
ion concerning thiss part may b be ob-
ernments,tions. inured by contacting the Office of Fed-
(e) 0MB responsibilities. Oli4B is re- prat. Financial Management, Office of
sponsor:
for: t and Budget,Washington,
(1) ibleIssuing and maintaSnir�the spud_ DC 20503,telephone(202)3 .
ante in this part. (g)Termination Review Date.This part
(2) Interpreting the policy require- . will have a policy review three years
meats in this part and providing assist-
ance from the date of isscance.
to ensure effective and efficient
implementation. Siiipott A--G@nd
(9)Reviewing Federal agency regala-
s implementing the guidance in f Sib1
lion
this part, as required by Executive This part establishes uniform admin-
Order 12666. istrative requirements for Federal
(4) Granting any deviations to Fed- grants and agreements awarded to in-
oral agencies from the guidance in this stitutions of higher education, hoe-
part, as provided in 4215.4. Exceptions pitals, and other non-profit organise-
will only be made in particular cases tions. Federal awarding agencies shall
not impose additional or inconsistent
1 see 5 OFB.1310.9 for availability of OMB requirements, except as provided in
circulars. §i 215.4,and 215.14 or unless specifically
78
OMB Dcs and Guidance §215.2
required by Federal statute or eaeco- money;other assistance in the form of
five order. Non-profit organisations 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 kw to individuals;and,contracts •
quirements. which are required to be entered into
and administered under
f IM Outran, laws and regulations. procurement
(a) Accrued exPenditures means the (f) Cash contributions means the re-
charges incurred by the recipient dur- cipient's cash outlay, inclneing the
ing a given period requiring the provi- outlay of money contributed to the re-
don of finds for cipient by third parties.
1)Gmde and other.tangible property (g) Closeout means the process by
(a)Services
performed by employees. which a Federal awarding agency de-
eentnieters, aubrecipiente, end Other trative B that all applicable wank q..
and, furtive actions and all required work of
(8) Other amounts becoming owed the award have been completed by the
under programs for which no current recipient ead'Federal awarding agency.
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 ender a
from recipient's or sabrecipient's contract..
(i)Services performed by the recipi- (i) Cost sharing or matching means
e(t,and that portion of project or program
ii) Goods and other tangible prop- costs nct borne by the Federal Govern-
erty delivered-to purchasers,and meat.
(2) Amounts becoming owed to the (j)Date of completion means the date
recipient for which no current services on which ail work under an award is
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) Diasdowed costs means those
taohments, accessories, or auxiliary chaff 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 accordance with the ap-
was acquired. Other charges, such as ,,plicabie Federal cost principles br
the cost of installation,transportation, other terms and conditions contained
taxes, duty or protective in-transit in- in the award.
sarance' shall be included (Jr excluded Eqtapnent means tangible non
from the wait ars itiaa cost in ors- expendable P�ona1 property including
continua with the recipient's regular exempt property charged directly to
accounting practices. the award having a useful life of more
(d) Advance means a payment made
. 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) ]rums Property means property
schedule& 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) gluing 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
§215.2
2 CFR Ch.u(1-1-12 Edinon)
eral
without farther obligation to the Fed- barseraeats for direct charges for goods
apt Property Government. An n i�p'eco of ex ct and.sacvices,the amount of indirect ex-
in the Federal Grant and.Cooperativetained Pence the value of in-kind
contributions Act (31 U.B.C. contribution, applied, and the net in •
-
property acquired under an aw�ard' forto crease (or decrease) in the goods and
conduct basic or applied research owed pter recipientreceivfor and
non-profit inetitation of higher edu-ed p� �opby led, for services
cation or non-profit Organisation performed employees,other payees andn
whose
eiprincipal
r is conductingotheramounts becoming owed under
(o) Federal awarding agency means which
�no services •
the Federal agency that provides an (v) Personal property means
award to the recipient. prgpert real property. It
total(p)amount of deral funds.authorized means the m. of y bey kind having physical I-
Federal funds obli- �,or ilea, physical
gated by the Federal Government for existence,such as copyrights,patents,
use by the recipient.This amount may or securities.
metedor any authorised carryover of un- (w).Prior:approval means written ap-
funding pe- proval by an
dads
roods �when permitted by agency regale-• dencingg authorised ed oildoial evi-
tions. agency implementinginstrao- (x) Program income means gross in-
(q) Federal share of real property, reotly generacome earned tedthe recipientrted that is lv-
equipment,or acquisition ity or earned as by sult
oentage of the of the award
(see exclusions in 5215.e4(e) and (h)).
costs and any improvement
cures paid with Federal funds. expendi- Program income includes, but is not
�) period limited to, income from fees for sere:
when the period of ice performed,the use or rental of real
fortime when Federal the t available or personal property under
(a)Intangible property and debt instru- federally-funded projects,s the sale of
meats means, but is not limited to, a award,
license or tf feess fabricated under
trademarks, o an award, and royalties on
patent applications m'nd s and patents and ate,and Interest on
as loans, notes and other debt instils- earned�Made with es ofd edera.funds is
menu,, lease agreemzents, stock and n r on m advances of Federal funds other-
other instruments of property owner- wise provided lie. Except as
and
. ship,whether considered tangible or in- provided in Federal awarding
tangible. agency regulations or the terms and
conditians of the , program in-
(t)Obligations means the amounts of come does not incluwdee the receipt of
orders placed, contracts and grants principal on loans,rebates,credits,die-
warded, 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
(n) Outlays or expenditures means Federal costa
charges made to the project or pro- recipient and the value principles,f incurred�a gram.They may be reported on a cash Lions made by third parties in a000m-
or accrual basis. For reports prepared pushing the objectives of the award
on a cash basis,outlays are the sum of during the project period.
cash disbursements for eoosb and sertiofor direct
charges (s)Project period means the period es-
indirect expense charged,the value
of tag whichrl in the l sponsorship
document gins
third party in-kind contributions an Federal aPoneorship begins
plied and the amount of cash advances and '
and payments made to subrecipients. stated,Property means,unless otherwise
• For reports prepared on an•acoraal property, equipment,bt in-
basis, outlays are the sum of cash dis- me boy and debt rostra
80
OMB Circulars and Guidance 92152
(bb)Real property means land,induct- money, or property in lien of money,
ing laud 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.
(es)Recipient means an organisation 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 nsams includes f nigher winos and
private insti meat of goods and services nor does it
on,public and include any form of assistance which is
private hospitals,and other quasi-pub- excluded from the definition of
lio and private non-profit organizations "award"in$215.2(e).
such as,but not limited to,community (gg)Subrecipient means the legal miti-
aotion agencies, research institute, ty to which a subaward is made and
educational associations, and health which is accountable to the recipient
centers. The term may include con- for the use of the funds provided. The
menial organisations,foreign or intern term may include foreign or inter-
national organizations (such as agen- national-organisations (such as agen-
cies of the United Nations) which are pies of the-United Nations) at the dis-
recipients, subrec ipients, or. contras- oration 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 property, and debt instruments as de-
can permed 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•researoh and level- CFR part 401, "Rights to Inventions
opment centers. Made by Nonprofit Organisations. and
(dd) Research and development means Small Business Firms Under Govern-
all research activities, both basic and ment Grants, Contracts, and Coopera-
applied,and all development activities tive Agreements.„'
• that are supported at universities, col- (ii) Suspension means an action by a
leges, and other nonprofit. instita- Federal awarding!agency that tempo-
tions. "Research" is defined as a sys- racily withdraws Federal.sponsorship
tematic Study
directed toward faller under an award,pending corrective so-
scent subject studded. "Dwledge or evelopment" tion by the recipient or pending a deal-
of use .o knowledge
sion to terminate'the award by the
isthesystematic ledge and Federal awarding agency. Suspension
understanding gained from research di- of an.award is a separate action from
rested toward the production of.useful suspension under Federal agency raga-
materials, devices, systems, or meth- •lations implementing E.O. 12549(51 FR
ode, including design and development 6870,3 CFR,1966 Comp.,p.189)and E.O.
of prototypes and processes. The term 12889(54 FR 84131,3 CFR,1969 Comp.,p.
• research also includes activities in- 235),"Debarment and Suspension."
volv"ng the training of individuals in (jj) Termination means the c ancela-
research techniques where such aetivi- tion of Federal sponsorship,in whole or
ties utilise 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-
(ee) Small awards means a grant or tions provided by non-Federal third
cooperative agreement not exceeding parties. Third party in-kind contriibu-
the small purchase threshold fixed at tions may be in the form of real prop-
41 U.S.C.403(11)(currently 225,000). arty,equipment,supplies and other ex-
(fi) Subawprd means an award of fi- weldable property, and the value of
nancial assistance in the form of goods and services directly benefiting
81 •
•
•
§215.3 2 CFR Ch.n(1-1-12
• and specifically identifiable to the utory. Exceptions on a
• project or program. basis may also be made decal
(11) Ufliguidated obligations, for Anita- aW by Federal
c reports prepared on' a cash basis, warding agencies.
means the amount of obligations in- §218,S Sabawar]a•
purred by the recipient that have not Unless sections of this part specit-
been P & For rePorte tare sPr ePared on an °Ally exclude sat ipien from coy-
resent the amount of obligations theY in- Vie'the provisions ofie this part sin
outlay has tnhe
been recorded.for which an applied to � performing carted by
recorded. work ae er institutions
edu-
(mm) �-
Unebli�g�ated balance means the ' cats are titaoio t r higher Portion of the funds authorisedg8' on,hospitals. State
or other no l gov or-
Federal awarding agency that has theo meat t"re are local govern_
• been obligated by the recipient aid is meat s¢brefregul are subject to the
determined by deducting the came- prove isions of management
nal lions common
rule,
lative funds authorised,tions from the camalative ,runiform� Administrative Require-
funds Unrecoaened indirect cost means• manta for Grants and Cooperative
the difference between the amount ernmentAgreements publishedto State and Local Grp
awarded and the amount which could „ , inGm at 7 cm 1 parts
Cm
have been awarded under the recipi- part and 10 par part.00C .18 cm
��approved negotiated indirect cost 22 > , 80 parts pest
• 155,24 CF'R 44,86,
(oo) Wonting capital advance means a �' �, 570, �•, 575, 590, 850, 882,.905,
procedure whereby funds are advanced G941 parts and 990,28 2 part t6,29
to the recipient to cover its estimated 34 G Parts amuck an 82 cm part 278,
disbursement needs for a given initial 34 ' parts 74 and.80, 36 t,
period. lalR,'�CFS.part 43,4U CF$parts 30,at,
and et49CFR part 12,44CFRpartis,
§ E as a4Ler 45 CFR parts 74,92,602,1157, 1174, 1183,
For awards subject to this part, all ,and ,and OF'R p 18.
•
•
administrative requirements of oodi- Lis Pm PIM May U.2004,as amen:Ica at 70
fled Program regulations, program PR 5 ;Aug.31,2/61
manuals, handbooks and other neon-
t which are Moon- .Subpart B--Pre-Award
d
requirementsExisten with the of this Requiravnents
part shall be superseded, except to the
extent they are required by statute, or 8 16.10 Purpose.
authorised in accordance with the devi- Sections 215.11 through 21517 pre-
ations provision in§215.4. scribe forms and instructions and other
§816.4 Pre-award matters to be used in apply-
The Office of Management and Budg i for Federal awards.
et (OMB) may grant exceptions for 121541 Proaward policies.
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 stet- stance, the Federal awarding agency
ute. However, in the interest of max- shall decide on the appropriate award
imam uniformity,.exceptions from the instrument (i.e., grant, cooperative
requirements of this past shall be per- agreement, or contract). The Federal mitted only in unusual cdrcunistaaces. Grant and Cooperative Agreement Act
Federal awarding agencies may apply (31 U.S.C. 6301-08) governs the use of
mare
• class of recite ve requirements to a grants, cooperative agreements and
n approved by contracts. A grant or cooperative
OMB. Federal awardinge
may agreement shall be used
apply less restrictive requirements principal ° the
when awarding small awards, except accomplish ap purpose
apurp transaction ofisupport
for those requirements which are stat- or stimulation authorized by Federal
82
OMB Circulars and Guidance §215.15
statute. The statutory criterion for agency regulations implementing E.0.s
choosing between grants and coopers- 12549 and 12889, "Debarment and Sus-
tire agreements is that for the latter, pension."Under those regulations,cer-
"substantial involvement is expected taro parties who are debarred, Ms-
between the executive agency and the pefded 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 pm P'!;s1899,Aug.31, l
services for the direct benefit or use of
the Federal Government. 421514 Special ranted madam—ans.
(b) Public Notice and Priority Set-
ting. Federal awarding agencies shall If sc or recipient:is not a his-
notity the public of its intended fund- t of poor performance,g not Brun-
ing priorities for discretionary grant malty t stable, has a meet theemtt ays-
programs,unless funding priorities are tern prescribedhat dons nots standardsn
established by Federal statute. formed
to thin sa n con not coo
formed to the terms and conditions of
mall Foams for apidiyhte for Fes. a previous award, or is not otherwise
oral assialamce. responsible,Federal awarding agencies
may impose additionalas
(a) awarding agencies elan needed,provided that suchmt or
comply with the applicable. report
recipient
clearance requirements of 5 CPR part mho nhenatuatu is notified inre of the additional
uire-
1320, "Controlling Paperwork Burdens mote,
• on the Public," with regard to all require the reason why the additional
requirements are beingimposed, the
forms used by the Federal _awarding'
nature of the corrective actionneeded,
agency in place of or as a supplement the time allowed for completing
the
to the Standard Form 424 (S21-424) se- corrective actions, and the method for
rise. requesting reconsideration of the addi-
•
(b) Applicants shall use the SF-424 tioz ai requirements imposed.Any ape-
series or those forms and instructions cial conditions Khan 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 YE 30959, 3 matt-
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 cam.petitivrn Act(15 U.S.C. 205) de-
Assistance)indicating whether the ap- glares that the metric system is the
plication 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 See-
the.Federal awarding agency or the rotary 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 rio implementation may take longer
State for review. where the use pf 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-
este whether the application is subject ment of federally-funded activities.
to review by the State under E.0.12372. Federal awarding agencies shall follow
$ffiS.lE Debarment and saspe�am, the provisions of E.O. 12770, "Metric
usage in Federal Government Pro-
Federal awarding agencies and re- grams"(58 FR 85801,3 CFR 1991 Comp.,
cipients shall comply with Federal p.343).
83
§215.16 2 CFR Ch.11(1-1-12 Edition)
§215.16 Resource Conservation sad data to performance data and develop
Recovery 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 prof- disclosure of the financial results of
erenoe be given in procurement pro- each federally-sponsored,. project or
grams to the purchase of specific prod- program in accordance with the report"
nets containing recycled materials n requirements set forth in t215.52.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- olident that maintains its records on
ingly, State and' local institutions of other than an accrual basis,'the reoipi-
higher education, hospitals, and non- ent shall not be required to establish
profit organizations that receive direct an accrual accounting system, These
Federal awards or other Federal fends recipients may develop such accrual
shall give preference in their procure- data for its reports on the basis of an
meat programs landed with Federal analysis of the documentation on hand
funds to the purchase of recycled prod- (2) Records that identify adequately
note pursuant to the EPA guidelines. the source and application of funds for
Dianfederally-sponsored activities. These
Certifications and 8-t - records 001 contain information per-
taining to Federal awards, authoriser
Unless prohibited by statute or codi- Lions, obligations, unobligated bal-
fled regulation, each Federal awarding anoes, assets, outlays, income and in-
agency is authorized and encouraged to •tenet.
allow recipients to submit certifi- (8) Effective control over and ex-
cations and representations required countability for all funds,property and
by'statute, executive order,.or regular other assets. Recipients shall ads-
tion on an annual basis, if the recipi- quately.safeguard all such assets and
ante have ongoing and continuing rela- assure they•are used solely for author-
tionships with the agency.Annual car- ised purposes.
tifications and representations shall be (4)Comparison of outlays with budg
signed by responsible officials with the et amounts for each award. Whenever
authority to ensure recipients'compli- appropriate, financial information
awe with the pertinent requirements. should be related to performance.and
unit Cost data.
Subpart C—'Past Awed (5) Written procedures to minimize
the time elapsing between the transfer
of funds to the recipient from the U.S.
Fmei cie7.AND PopPaoGatem MANAGEBIENT Treasury and the issuance or redemp-
tion216.20 Purpose Smaacial and of checks, warrants or payments
�� Pro- by other means for program purposes
by the recipient.To the extent that the •
Sections 215.21 through 215.2 pre- provisions of the Cash Management Im-
scribe standards for financial manage- provement Act(OMIA.)(Pub.L.101-458)
meat systems, methods for making govern, payment methods of State
payments and rules for:satisfying cost agencies, instrumentalities, and fiscal
sharing and matching requirements, agent& shall be consistent with CMIA
accounting for program income,budget Treasury-State Agreements or the
revision approvals, making audits, de- CMIL default procedures codified at 31
termining ailowability of cost, and es- CFR part 205, "Withdrawal of Cash
tabiishing fund availability. from the Treasury for Advances under
4 for fin EMI- Federal Grant and Other grams.
agement systems. mildng the(6) Written procedures forordeter..
(a) Federal awarding agencies shall and allowability of in in accordance
require recipients to relate financial with the provisions of the applicable
84
•
•
•
OMB Circulars and Guidance 621522
Federal cost principles and the terms the actual disbursements by the recipi-
and ccnditioas of the award.
(7)Accounting records including cost prb organisation costs
stsioa for direct program or
accounting records that are supported share of any allowable the proportionateost .
by source documentation erpossible, advaanireqt costs.
(c) Where the Federal (cc Whenever advances shalld
guarantees or insures the Government be consolidated to cover anticipated
money Payment of cash needs for all awards made by the
borrowed by the recipient, the Federal awarding agency to the recipi-
. Federal awarding agency,at its disu e- ' ant.
tion, may require adequate bonding (1).Advance payment mechanisms
and insurance if the --.to,Treasury
s in
bonding and incur- elude,but are not limited
anoe 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 (8)Recipients shall be authorised to
require adequate fidelity bond()overage submit requests fOr advances and reim-
where the recipient leeks sufficient bursements at least monthly when
•
coverage to protect the Federal Gov- electronic iund.transfers are not used.
ernment's interest. .(d) for.
(e) Where bonds are required in the TreastirY check ad-
(e)
situations described above, the bonds vanes payment shall be Advance
Be on
be obtained from Companies hold- bsursent `Regorso t or Reim-
ing certificates of authority as:accept- authors or other forma as may beo
able sureties, as prescribed in 31 OFR be bIIthc�d when by Or'Thin form is not to
• Part �, "Surety Companies paused Treasurymade checkh advance
Business with the United States." its are made to the redp -
sutomatioeetly through the use of a pre-
determined1216.22 Payment. payment schedule or if Pre-
(a)Payment methods shall minima Eluded by special Federal awarding •
agency instructions for electronic the time elapsing between the
funds transfer.
of funds from the United States Treas-
ury and the issuance or red et) Reimbursementhenthe is the preferred
• checks,warrants,or payment other 218� .12(b)wccanannot be met. Federal
. means by the recipients. Payment awarding agencies may also use this
methods of State agencies or bistro, method on any constriction agree-
•
mentalities shall be consistent with meat, or if the major portion of the
Treasar9-State Chili agreements. or construction project is
part accomplished
default
procedures codified at 81 CFR through private market fmm� or
aip Federal loans, and the'Federal assist-
van) Recipients
ients are to be paid in ad- ante constitutes a.minor portion of the
they maintain or dem- project.
onstrate willingness to maintain: (1) When the reimbursement method
the timeO.)Written procedures that minimise is used, the Federal awarding agency
off ands nd end disbursemensing betweent the transfer shall make p within 80 days
of and can •
by the re- after receipt of the billing, unless the
(2) Financial management billing is improper.
systems (2) Recipients shall be anthorized to that meet thecon-
trol and accountabilityas established least submitmonthly t forn rembur electronic funds at
in§215.21.Cash advances to a recipient transfers are not used.
organization shall be limited to the (I)If a recipient cannot meet the cri-
minimum amounts needed and be terda for advance payments and the
timed to be in accordance with the ac- Federal awarding agency has deter-
teal, immediate cash requirements of mined that reimbursement is not fea-
the recipient organisation in carrying sible because the recipient
out the purpose of the approved pro- dent working lacks saffi-
gram or project. The timing and awarding capital,a providee Federal
amount of cash advances shall be as woragency may ceacash'Under r
close as is administratively feasible to thiscapital advance basis. ding
procedure, the Federal awarding
85
§215.22 2 CFR Ch.II(1-1-12 Mon)
agency shall advance cash to the re- (2)Advances of Federal farads shall,be
cipient to cover its estimated disburse.- deposited and maintained in insured
meat.needs for an initial period gen- accounts whenever possible.
orally geared to the awardee's die- (j) Consistent with the national goal
buretng Vie. Thy, the Federal of expanding the opportunities for
awarding agency shall reimburse the women-owned and minority-owned
recipient for its actual cash disburse- business enterprises,recipients shall be •
menu. 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-
teal cash disbursementa vanes of Federal funds in interest
(g) To the extent available, recipi- bearing accounts, unless paragraphs
ents shall disburse funds available from (kX1),(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- •$L70,000 in Federal awards per year.
bates, refunds, contract settlements,. (2) The best reasonably available in-
audit recoveries and interest earned on serest bearing account would not be ex
such funds before requesting additional' peoted to earn interest in excess of 2250
cash payments. per year on Federal cash balances.
(h)Unless otherwise required by stet- (3) The depository would require an
rate, Federal awarding agencies shall average or miuimum balance so high
not withhold payments for proper that it would hot be feasible within the
charges made by recipients at any time expected Federal and non-Federal cash
during the project period unless part- resources.
graphs (hxl) or (2) of this section a) For those entities where CMIA
apply. and its implementing regulations at.31
(1) A recipient has failed to comply cpg 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 subreaipient 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
grams." Under such conditions, the for administrative expense. State uni-
Federal awarding agency may, upon versities and hospitals shall comply
reasonable notice,inform the recipient with CMIA,as it pertains to interest.If
that payments shall not be made for an entity subject to CI IA uses its own
obligations incurred after a specified funds to pay pre-award costs for diacre-
date until the conditions are corrected tionary awards without prior written
or the indebtedness to.the Federal Gov- approval from the Federal awarding
ernment is liquidated. agency, it waives its right to recover
(i) Standards governing the use of the interest under CMIA.
banks and other institutions as deposi- (m)Except as noted elsewhere in this
tortes of funds advanced under awards part, only the following forms shall be
are as follows. authorised for the recipients in re-
(1)Except for situations described in questing advances and reimburse-
paragraph(i)(2)of this section,Federal meats. 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-
tortes 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 nonconstraction
count for the receipt, obligation and programs when electronic fonds trans-
expenditure of funds. fer or predetermined advance methods
86
OMB CAW=and Guidoirice
§215.23 •
•
are not used. Federal awarding agen- (1)The certified value of the remain-
. (des,however,have the option of using ing life of the property recorded in the
•
this form for oonstruction programs in recipient's accounting records at the
lien of the SF-g'fi, "Outlay Report and time of donation.
Request struction for abasement for Con- (2) current fair market value.
•
(2) 8F-271, 'Outlay Report and Re- tiHowever, when there is awardingsufficient ague-
-jos
quest for Reimbursement for Construe- cri Mayistoatioa the pproveFederalthe use
of ecurrent tion Programs. Each Federal awarding fair marketvalue the donated prop-
, 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
�t for contraction pro- project. !
grams. However, a Federal awarding
(dD Volunteer services furnished by
agency may substitute the SF-g70 professional and technical personnel,
when the Federal awarding agency de- - consultants, and other skilled and un
termines that it skilled labor may be counted as cost
formation to meet Federal needs, sharing or matching if the service is an
integral and necessary
a (a)tAlllproved'projectr services phall be oRnsis for
contributions,
including cash volunteer shall be consistent
party in-kind, shall be sr- with those.paid for similar work in the
cepted as part of the recipient's cost. recipient's organisation. In those in-
sharing or matching when such con- _stances in which the required skills are
tributions meet all of the following art- not found lathe recipient organisation,
(1)Are verifiable from the recipient'srates shall be'consistent with those
recsords. paid for similar work in the labor mar-
(�Are not included as ket in Which the recipient competes for
for any other fed contributions the kind of services involved.In either
or program. may-assisted project case,paid fringe benefits that are rea-
(3)Are necessary and reasonable far bincludedt allowable,valuation.allocable may
proper and efficient accomplishment of (e)When an employer other than the
project or program objectives, recipient furnishes the services of an
(4)Are allowable under the app'Lica- employee, these-services shall be val-
ble cost principles, ued at the
(5)Are not paid by the Federal (lov- employee's regularn rate of
eminent under another award, pay(pluseean amount ofl fringe bendfal-
where authorised except that are reasonable, allowable, and a1- .
be al-
where for cost by Federal statute to . locable,. but exclusive of overhead
sharing or matching. bests),.provided these services are in
(6)Are provided for in the approved the same skill for which the employee
budgete when.required by the Federal is normally paid. •
(7) Conform to other provisions of such items Donated supplies � inalnde
tl part,asasv�ble, 1e s equipment,es o indirect costs office laboratory
included as may be workshop and classroom
part of cost sharing or Value assessed to donated supplies.
awarding with the prior approval eluded in the cost sharing or s�h� in-
matching t)the Fer Federal
share shall be reasonable and:matching
of c)se Valuesvices for
contributions. exceed the fair market value of the
property shall be estab- property at the time of the donation.
lashed 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 authorises recipients to do- equipment, buildings and land for
atebt di�or l�pro for jects construction/ which title passes to the recipient may
acquisition differ according term use, the value of the donatedto the purpose of the
property for cost sharing or matnhung section apply.
paragraphs� )or(2)of this
shall be the lesser of paragraphs (o)(1) (1) If the purpose of the award is to
or(2)of this section. assist the recipient in the
acquisition
• 87
•
•
•
•
•
§215.24
2 CFR Ch.N(1-1-12 Eta
of equipment, buildings or land, the related to projects financed in whole or
total value of the donated property in part with Federal funds.
may be claimed as cost sharing or
matching. (b) Except as provided in Paragraph
at
(h) of this section,If the purpose of the award 3s to section, programincome
=PPort activities that require the use be ret the recipient
p e period n ac-
of equipment, buildings or land, nor- be retained by the ral awarding and,agency
cy
mally only dePreofatioa or use corui a j with Feeral a a onth-
for
chargss regalationa or the. terms and corgi_
�e�u t, buildings may be tic, of the award,shall be used in one
meat or other equip- to more of the.ways listed in the fol-
• reatal �'� �� and fair lowing.
charges for land may be allowed, G).Aid to funds committed to the
Provided that the Federal awarding
agency has approved the charges, anardSrecpi the.Feduse awarding y
•
(h) The value of donated ble recipient or and used b farther eIigi-
sha shall be determined
fermi accounting
accordance (2) Used to finance r program�non-Federal
Ling policies of the re- share of the project or
•
ciplent, with the following gnali$oa. program.
bone. ($)Deducted from the total project or
(1) The value of donated land and program allowable cost in determining
buildings shall not exceed its fair mar- the net allowable costs on which the
ket value at the time of donation to Federal a of costs is based,
the recipient as established by an lade- disposition When as agencygraauthorizesco the
Pendent appraiser (e g'., certified real scribed
inn r a graphs( income b )as( de-
�Perty appraiser or General Gervlees this bed paragraphs income excess(b of
Administration representative) and this section,program in d
certified by a responsible official of the accordance Y limitscestipulated shall be in
o
(2) The value of donatedrecipient.
sect oe with paragraph @)(g) of
shall not exceed the fair market valueva•
(d) the event that the Federal
of equipment of the same age and con- awardingagency does not specify in its
dinar at the time of donation. regulations or the terms and conai-
(S)The value of donated space shall bons of the award how Program income
not exceed the fair rental value of cem is to be need, paragraph (b)(3) of this •
Parable space as established by an' section shall apply rmsautomatically
• pendent appraisal of comparable.space all Projects or programs support re-
and facilities in a Privately-oweed Groh. era awards that suppsec on
building in the same locality. ,Pay auto(btic of this section
the
(4) The vane of loaned egaipmBnt mall awaparding
agency nc automatically theese ms
shall not exceed its Pair rental valve.. warding indicates in verms
(5) The following requirementse wconditions dthe recipient alternative a on
to
taro to the recipient's eoPPor Per-g the award or is subjected
records for in-kind contributions from special award conditions, indicated
third parties. F2I514.
parties.
(i) pVolunteer services shall be data- (e) Unless Federal awarding agency
regulations or the terms and -
mented and,to the extent fea blame,, tiena ofthe award provide otherwise,Ported by the same
the recipient for its own employees. theipients shall have Government egardingn to
o-
•(ii) The basis termrmining he gtram� after end of
valuation for the project periodof
.
rlai, equipment, buildings and land
shall be documented. (fl If authorised by Federal awarding
agency regulations or the terms and •
4 gid.84 Program'iaoc®e. conditions of the award,costs incident
(a) Federal awarding agencies shall to the generation of program income
may be deducted from gross
apply the standards set forth in this determine program income,
ito
to
tion section In r requiring recipient organise- these costs have not been chamrg deto
Program income the award.
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-
arda(see§215.30 through 11215.37). anoe 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, recipe- for Educational Institutions(OMB Cir-
ants 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.(OMB Or-
fees and royalties for copyrighted ma- cabar A_128);"
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 ptinahle to Research and Development
Trademark Amendments (85 U.S.C. 18) yn,iar Grants and Contracts with Hoe-
apply to inventions made under an ex- pi} „and
perimental,developmental,or research (iv) 48 CF8 part
award. des and “Contract Cost
f818.95�Bsvi�an of budget and pro. (7) The transfer of funds allotted for
g P trainees)training allowances to other (direct payment to
(a) The budget plan is the t5nanrtal penes. categories of ex-
expression of the project or program as (8) Unless described in the applioa-
approved during the award process. It lion and funded in the approved
may include either the Federal and awards,the subaward, transfer or.con-
non-Federal
' share, or only the Federal out of any work under an
depending upon Federal award- award.This provision does not apply to
mg agency requirements.It shall be re- the Purchase of sapmea, 'material,
lated to performance for Program eval- equant or general
nation.purposes whenever appropriate. (d) No other support services.
(b)Recipients are required to report Arco approval rbelare-
from budget and program meats for specific deviation items may been ha.-
deviations
ap-
plans, and request prior approvals for.. posed�� a has budget and Pram plan.revisions, in proved by OMB.
accordance with this section. (e) rots listed is
(o) For noaconstruction awards, re- tionPa Federal ra (caw)and (c)(4).of tide sec-
cipients shall request prior approvals thor s awarding optic agerlwai are st-
from Federal awarding agencies for one wed,at their option,to wive cost-
- or more. of the following program related and administrative prior writ-
or moget related, ofeeaollo or ten approvals required by 21 CFR parts
(1)Change in the scope or the objee- 120 and Such (OMB Gray Inc Adel and A-
thor-
tive of the project or program(even if �' waivers may include one or more
there is no associated budget revision of�the recipients to do any one more
requiring prior written approval).' following.
(2) Change in a key Person specified (1) prior
Incur pr award costs more calendar
in the application or award document. days prior to award or 90
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 t14e 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 lees 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
icy following conditions apply. For one-
:4
•
§215.26 2 CFR Ch.9(1-1-12 EdRan)
time extensions,the recipient must no- (8) 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 sped- OMB cost principles listed in§21527.
fled in the award.This one-time eaten- (1) No other prior approval require-
sion may not be exercised merely for menu for specific items may be im
the purpose of using unobligated bal- posed unless a deviation has been ap-
awes. proved by OMB.
(i)The terms and conditions of award U) When a Federal awarding agency • •
prohibit the extension. • makes an award that provides support
(ii)The extension requires additional for both construction and nonoonstrao-
Federal funds. • tion work,the Federal awarding agen
(iii) The extension involves any ay 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 fond or .
(3) Carry forward unobligated bid_ budget transfers between the two types
aaoes to subsequent funding periods. of work supped.
(4)For awards that support research, (k) For both construction and not'
unless the Federal awarding agency motion awards, Federal awarding
provides otherwise in the award or in agencies shall require recipients to no-
• the agency's regulations,the prior ap- tl4 the Federal awarding agency
proval requirements described in thin writing promptly whenever the amount
paragraph(e)are automatirRany waived of Federal authorised 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 (1) When requesting approval for
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 each transfers application unless the Federal award-
exceeds or is expected to exceed 10 per- tug agency indicates a letter of request
cent of the total budget as last ap- maim.W thin 3°c�lendaallays m the
proved by the Federal awarding seen- f
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 aFeacirs
Federal appropriation or part thereof elan 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 nonoonstrdc- 30 calendar days,the Federal awarding
tion budgets,except for the changes de- agency shall inform the recipient in
scribed in paragraph(1)of this seotina„ writing of the date when the recipient
do not require prior approval. may expect the decision.
(h) For construction awards, reci i.- (B9 FR 26981,May 11,20p4,as amended at 70
eats shall request prior written ap- FR 51890,Aug.31,2o5)
proval promptly from Federal awarding §815.26 F
agencies for budget revisions whenever
paragraphs (h)(1), (2) or(3) of this sea- (a)Recipients and sabreoipients that
tion apply. are institutions of higher education or
(1)The revision results from•changes other non-profit organisations (inolnd-
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
90
•
OMB Circulars rs and Guidance g 215.29
Circular A 133, "Audits of States, visions of the Federal Acquisition Reg-
Local Governments,and Non-Profit Or- illation(FAR)at 48 CFR part 31. •
ganizations."
(b)State and local governments shall '
be subject to the audit requirements 1815.28 Period of availability of funds.
contained in the Single Audit Act a fending period is a
Amendments of 1998. (31 U.S.C. 7501- wed+
7507) and revised OMB Circular A-133, pient�obese to the grant oiniy
"Audits of States,Local Governments, allowable cosh •
resulting from oblige,
and Non-Profit Organizations." bons incurred during the funding pe-
(C) For-unfit hospitals not Covered riot' and any;pre-award costs author •
-
by the audit provisions of revised OMBreed by the Federal awarding agency.
Circular A.133 shall be subject to the **wag
audit requirements of the .Federal
awarding agencies. (a) OMB authorhses conditional ex-
(d) Commercial organizations shallemption from Olin administrative re-
quirements and cost principles ci rca
-
the Federal warding agency or the Jars certain Federal programs with
Prime recipient as incorporated into statutorily-authorized consolidated
the award ient document. planning and consolidated administrar
• tive funding, that are identified by a
1815.27 Allowable costs.' • Federal agency.and approved by the
For each kind of recipient,there is a head of the Executive department or
estset of Federalprinciplesfordeter- consult with OMB during its consider-
miningallowable costs.Allowability of ation of whether to grant such an es
costs shall be determined in accord- emption.
once with the cost principles applicable (b) To promote efficiency in State
to the entity incurring the costs.Thus, and local program administration,
allowability of costs incurred by State, when Federal. non-entitlement pro-
local or � Indian grams with common purposes have ape-
tribal governments is determined in cific statutor,7y..authorized consols-
accordance with the provisions of 2 dated planning and consolidated ad-
Part 225, "Cost Principles for ministrative funding and where most of
State,Local,and Indian Tribal Govern- the State .agency's resources come
menu(OMB Citoular A-87."The allow- from non-Federal sources, Federal
ability of costs incurred by nonprofit agencies may exempt these covered
organisations is determined in accord- State-administered, non-entitlement
anme with the provisions of 2 CFR part grant programs from certain OMB
230,"Cost Principles for Non-Profit Or- grants management requirements. The
ganizations(OMB 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,
mined in accordance with the provi- and Indian Tribal Governments (OMB
dons of 2 CFR part 220, "Cost Prin Circular A-87)" other than ;the
ciplea for Educational Institutions allocability of costs provisions that:are
(0MB Circular A-21)."The allowability contained in subsection.0.3 of appendix
of costs incurred by hospitals is deter- A to that part;
mined in accordance with the provi- (2) The requirements in 2 CFR part
dons of appendix E of 45 CFR part 74, 220, "Cost Principles for Educational
"Principles for Determining Costs Ap- Institutions (OMB Circular A-21)"
plicable to Research and Development other than the allocability of costs pro-
UraRr 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
warred by commercial organizations part;
and those non-profit organizations list- (3) The requirements in 2 CFR 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
•
•
§215.30 2 CFR Ch.11(1-1-12 Edlion)
other than the allocability of costs pro- 1gp6.81 bearance coverage.
visions that are in paragraph A.4 is
section A of appendix A to that part; vide Recipients shall, at a ninifmmn,pro-
(4) The administrative requirements the equivalent insurauie coveragenn-
provisions of part 215(OMB Circular A— for real and equipme
nt so-
110, "Uniform.Administrative Require- to glared with owned fonds as ec pii nt.
manta for Grants and Agreements with F owned by the recipient.
Institutions of Higher Education, Has- a insured
unless
n e s required b
a need not bs
pitals,and Other Non-Profit Organise_ andQnnditiona of the way the farms
bons,");andrd.
(5)The agencies'grants management 1215.32 Reek properly.
common.rule(see 1215.5).
(c) When Federal agency provides Each Federal awarding agency shall
this flexibility, as a prerequisite to a prescribe the use for ositionaos
State's exercising this option, a State concerning.the use and disposition n
must adopt its own written fiscal and partre underert9 acquired d whole rr is
administrative requirements for ea- pr b awards. Unless other require_
Pending and accoun ' for all merits,• by statute, such regniain
which are consistent with the pr merits,"sowint g. shall contain
lions 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 the authorized
of
recipients.These fiscal and add the project.as long as it is needed and
tive requirements must be sufficiently shall not encumber the property with-
specific to ensure that: fanda are used out approval of the Federal awarding
in compliance with all applicable Fed-
endstatutory and regulatory provi- agency.
sions, costs are reasonable and nee- (b)The recipient shall obtaina written
essary for operatingapproval by the Federal awarding oagen-
ther
and fonds are not be used for general ay for the use of real property hi other
expenses required to carry out other determines
federally-sponsored projects when the
recipient deterr minn es 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
Ess mann,may 1l,2004,as amended at 90 projects shall be limited to those under
FB 51881,Aug.31, ] federally-sponsored. projects (i.e.,
awards) or programs that have par-
PROPERTY STANDARDS poses consistent with.those authorised
1ii1S.80 for support by the Federal awarding
aria. of property skald agency.
(a) When the real property is no
Sections 215.31 through 215.37 set longer needed as provided in pare-
forth uniform standards governing recipient
(a)and (b) of this section, the
in-
management and disposition of prop- recipient shall request disposition
arty furnished by the Federal Govern-
agency or from the Federal awarding
meat whose cost was charged to a a cy or its successor Federal award_
project supported by a Federal award. mg agency. The Federal awarding
Federal awarding agencies snail re- agency g di canton one or more. the
quire recipients to observe these stand- following disposition i tion iy be permitted
arcs under awards and shall not impose (1)The recipient may be permitted to
additional regairemente,unless specifi- retain obligation
rally required by Federal statute. The Government after it
r
marecnagement may
stan use
its
ds and property fos'compensates of the current
provided it observes the provisionsoedures market value of the property attrib-
4215.31 1515.31. usable to the Federal participation in
the project.
92
•
OMB Madam and Guidance §215.34
(2)The recipient may be directed to (b) Exempt property. When statutory
sell the property ender 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 oblige-
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 awardinig agency not estab-
the recipient is authorized or required lash conditions, title to exempt prop-
to sell the property,proper sales prose- erGy upon acquisition shall vest in the
dures shall be established that provide recipient without further obligation to
for competition to the extent pray the Federal Government
ticable and result in the highest pos-.
Bible return. $
21524
(8)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
third party provided that, in such of this section.
oases,the recipient Oar(be entitled to (b}The recipient shall not use egnip-
compensation for its attributable per- meat with Federal funds to
oentage of the current fair market provide services to min-Federal outside
value of the property. organizations for a fee that is less than
private companies charge for equiva-
f815.33 Fedarally.owned and exempt lent services, unless specifically au-
property• thorized by Federal statute,for as long
(a)FederaThj-owned property. (1)Title as the Federal Government retains an
to federally-owned property remains interest in the equipment.
vested in the Federal Government.Bs- (o)The recipient shall use the equip-
cipients shall submit annually an in- meat in the project or program for
ventory listing of federally-owned which et era acquired project
a8 npro-
property in their custody to the Fed- gram ed,whether not the project by Fed-
Fed-
eral awarding agency.Upon completion end continuesna to supported the
of the award or when the property is no prod funds without shallp not encumber the
longer needed, the recipient shall re- oral awarding
itg ag-approval When
of no the Fed_
port the property to the Federal award- neededrel fofor the longer
lug agency for further Federal agency - original project ora uip-
utiIization. gram,the recipient shall use the equip-
If the Federal'awarding agency rent.in connection with its other fed-
(2)has no farther need for.the property,it e��- f p iorivitfes, in the fol-
lowing order of priority:
shall be declared excess and reported to (1) Activities sponsored by the Fed-
the General Services Administration, erai 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 (1)) 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
E.O. 12921., "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 ment was originally acquired. First
54285, 3 CFR, 1992 Crimp., 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
in agency. agency that financed the equipnie`at;
93
7
1215.34
2 CFR Ch.H(1-1-12 Mon)
second preference shall be given to f Projects or programs e by between quantities deter
o�pmFe Federal awarding agencies. the mined the physical inspection and
ent is owned by the Federal those shown in the accounting ine the
•
Government, use shall be investigated to de
not sponsored nnt, by the e��ties causes of the difference. recipient
• meat shall be Permissible if authorized ern- toryill' in oonneotian with the fovea •
-
by the Federal awarding ate. User 'fixation, an the ntintenoe,current uti-
the
charges shall be treated as program in- equipment. continued need for the
(e) When acquiring re (4) control system shall be in effect egl(e) t, the acquiring
m placementinsure adequate safeguards to 1
equipment to be replaced as ar nee the vent loss, pre_
or ora m theft r the
sell the equipment and use the equipment. Any loss, damage, or theft •
ceeds to offset the costs of the replace- offtdl Pm shall be investigated and
ment equipment biect to the ap- documented; egnnment was
Proval of the F warding agency. went,the
• meastandards t's recipient
shall ptl3► nottfry the
with Federal equipment acquired agencyy.
funds and federaliy ed shall equate maintenance procedures
equipment shall include all of the fol- implemented to keep the
lowing; equipment in good condition.
tained(I)Equipment records shall be main- (6):Where the authorized
accurately and shall include the Or required to Bell eqnipment,prop-
°w informatdan. er salsa procedures shall be(i)A description of the equipment. wbioh Provide for oompetitdon established
to the •
model anufaumber, er% serial number, extent Practicable and result in the
•
stock number, nrgirest possible return
national stock number,or other identi- (g) When the recipient no longer
fixation number,
needs the(iii)Source of the equipment,includ- may be used�pt' the equipment the award number. other gistes In ac-
ing Whether title vests in the �cordance with the followinga dasda.
ent or the Federal reoipi- For equipment with'a current Per unit
(v) ent. fair market value of$5000 or mom, the
sewed,ifc uisiequipment e (or date re- recipient may retain the equipment for
furnished other uses provided that compensation
by the Federal Government)and cost. is made to the original Federal award
(vi)Information from which one can ing agency or its successor. The
calculate the Percentage of Federal amount of •
participation in the cost of the equip.. Fated by applyipng��shall f meat(not applicable to equipffient fur- Federal participation in tPercentage of
he
nished by the Federal Government). original Project or cost of(vii) Location and condition of the rent fair market valueof�eq p-
equipment and the date the informs- ment. If the recipient has no need for
taon was reported.
(viii)Unit acquisition cost, the equipment, the recipient shall re-
i (ix) Ultimate disposition data, in- quest disposition instructions from the
eluding date of disposal and salsa, Federal awarding agency. The Federal
or the method used to determine cur- whetherice nip shall determine 1
rent fair market value where a reofpi- meet theequipment req can be used to
ent compensates
eg�� ppeensate the Federal awarding requirement agency's ts within te. If no
e Y for
i sh re. the availability of the equipmentthat
Ad-
Government shall be identified o i Federal ministration to the General al awarding
Ad l
cafe Federal ownership ministration by the Federal awarding
• (S) physical inventory of equipment ment for tltee agency to whether$ "
shall be taken and the results Feequi
pment exists in other
deral°nailed with the equipment records at cy shall cyencies The Federal award_
least once every two years. Any dif- he recipiento� ar
than]�calendar
94
•
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
calendar days after the recipient's re- 1215.36 Supplies and other expend-
quest, the recipient shall sell the able properly.
equipment and reimburse the Federal (a) Title•to supplies and other ea •
awarding agency an amount computed pendabie property talw1l vest in the re-
by applying to the sales proceeds the (1,1,n,t upon acquisition. If there is a
ran�e ntag� of.Federal Perticfpation in
- resi
of the original Project or pro- dual inventory of unused supplies
gram. However, the recipient shall be i5000 in total aggregate
permitted to deduct and retain from value upon termination or o�pletion
the Federal share$500 or ten percent of of the project or Program and the•sup-
the proceeds,whichever is lees,for the plies are not needed for any other fed-
recipient's eAlling and hranrlling Ay- eriabtaxmanad project or program,
penes. the recipient shall retain.the supplies
(2) If the recipient is instructed to for use'on non-Federal sponsored vs-
ship the equipment elsewhere, the re- tivitiee or sell them, but snail, in ei-
cipient shall be reimbursed by the Fed- ther case,compensate the Federal Ow"
end Government by an amount which ernmeat 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-
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 oasts In- organisations 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 'horized 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.
incurred in its disposition.
(4)The Federal awarding agency may 4215.36 amble properly.
reserve the right to transfer the title (a)The recipient may copyright any
• to the Federal Government or to a work that is subject to copyright and third Party named by the Federal Gov- was developed, or far which ownership
eminent when such third party is oth-
erwise eligible under existing statutes. was purchased, linger an award. The
Federal ate`allies)reserve
Such transfer shall be subject to the
following standards. royalty-free, nonexclusive and irrev-
(i) The equipment shall be.appro- ocable right to reproduce, publish, Or
priately identified in the award or oth- otherwise use the work for Federal Pur-
poses,made known to the recipient In p0 ,and to authorize others to do so.
writing. (b)Recipients are subject to applica-
(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 fnA.l inventory. The final rove; of Commerce at 37 CFR part 401,
tory shall list all equipment acquired " me to Inventions Made by Non-
with grant fends and federally-owned Profit Organizations and Small Bud'
equipment If the Federal awarding uses Firms Under Government Grants,
agency fails to issue disposition in- . Contracts and Cooperative Agree-
structions within the 120 calendar day manta."
period, the recipient shall apply the (o)The Federal Government has the
standards of this section, as appro- right to:
paiats. (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
' I
•
§215.37 2 CFR Ch.II(1—I-12
(2)Authorise others to receive,repro- (B)A Federal agency publicly and of-
duce, publish, or otherwise use such ficy cites the research findings in
data for Federal purposes,
(d) (1) In addition, in response to a support orc andf aneffect agency action that has
Freedom of Information Act the force of law.
quest for research data relating pub- ( )used by the Federal Goverment
n developing an agency action that
fished research findings produced under has the force and effect of ism is de-
an award that was used by the Federal
Government in developing an agency fined es when as agency publicly and
action that has the force and effect of oi$cia3]y cites the research findings in
law,the Federal warding agency maw support of an agency action that has
request, and the recipient shall pro- the farce and affect of law.
vide,within a reasonable time,the re- (e) Tit
le 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 sabaward vests upon acquisi
cedures established imps.the FOIL If tian in the recipient. The recipient
the Federal awarding agency obtains shall use that property for the origi-
the research data solely In response to na119-authorised Purpose, and the re-
a FOIL request,the agency may charge cipient shall not encumber the prop-
the requester a reasonable fee equaling erty without approval of the Federal
the fall incremental coat of'obtaining awarding agency.When no longer need
the research data. This fee should re- ed for the originally authorised par-
fleet costs incurred by the agency, the Pose;disposition of the intangible prop-
recipient,and the applicable snbrecipi- era4 shall occur in accordance with the
ants.This fee is in addition to any fees PrOVISIOns of 1215.84(g).
the agency may mess under the MIA [w slit a,i ii, as emended at 70
(5 U.S.O.552(aX4XA)). P73 51881,Avg.81,20053
(2) The following definitions apply
for Purposes of Paragraph (d) of this §215.87 .Pmapeetyfist relationship.
(i)Research data is defined as the re- Real property, equipment,intangible
corded factual material commonly ac- Property and debt instruments that are
cepted in the scientific community as acquired or improved with Federal
necessary to validate research findings, funds shall be held in trust by the re-
but not any of the following: Prelims- oipient as trustee for the beneficiaries
nary analyses, drafts of scientific pa_ of the project or program under which
Pere,Plans for future research,peer re- the Property was acquired or improved.
views, or communications with col- cif may;require recipients to
leagues.This "recorded" material ex- record hens or'other appropriate no-
eludes physical objects(e.g.,laboratory tines of record j to indicate that per-
samples).Research data also do not in- sonal or real property has been "-
elude: gnired or improved with Federal funds
(A) Trade secrets, oommercial infor- and that use and disposition conditions
mation,materials necessary to be held apply to the property.
confidential by a researcher until they
are published, or similar information PROCUREMENT STANDARDS
which is protected under law;and
(B) Personnel and;mPdin .l informa- §215'4° Perin' of Procurement
lion 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 finds.
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( s and Guidance §215.44
of applicable Federal statutes and ea- luaus commie'
eoutive orders. No additional procure- Au procurement transactions shall
mm t standards or requirements shall be conducted in a •nnnntar to provide,
be posed by the Federal awarding - to the maximum eatemt practical,open
agencies upon recipients, unless ape- and free competition. The recipient
cdficalls required by Federal statute or shall be alert to organisational, con-
executive order or approved by OMB. Eliot of interest as well as noncompeti-
1215r.41 Recipient responsibilities. five practices among contractors that
The standards contained in this seo- may restrict or eliminate competition
tion do not relieve the recipient of the en otherwise tivera3a tract:In -
contractuale�nsnre objective contractor perform_
underont c s con responsibilities esoipi� amoe and eliminate unfair competitive
the responsible authority, without re- .cif that develop or
course to the Federal awarding agency, statstate �'�• v requirements,
for
regarding the settlement and satisfac- bids and/or of work, invitations for
tion of ll
all contractual and administra- beds eolu a fromots for proposals for
shah
tive issues arising out of procurements pr excluded ent for such
entered into in support of an award or tprocurements.Awards shallo bid offerr
other agreement. This includes'die- is reesponsive
bidder or n+ whose or di
pates,claims,protests of award,source m to theu solicitation and i,
evaluation or other matters of a con- most advantageous to the recipient,
id-
tractaal nature. Matters concerning price,qualityliatio other factorsshallclearly conset
violation of statute are to be referred �' Solicitations h set
forth.' all requirements that the bidder
to such Federal, State or local author- or offeror Awn fulfill in order for the
ity as may have proper jurisdiction. bid or rim*to be evaluated by the re-
$816A8 Cedes of conduct. be
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 fonptoyees engaged §215A4 Procurement procedures.
in the award and administration of (a)All recipients shall establish writ_
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 tea, that paragraphs (a)(1), (2) and
supported by Federal fonds if a real or (3)of this section apply.
apparent conflict of interest would be (1) Recipients avoid purchasing un-
involved. Such a conflict would arise ney i ,
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 ergo- natives to determine which would be
nisation which employs or is about to the most economical and practical pro-
employ any of the parties indicated cerement for the Federal Government.
herein,has a flnamniaial 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 shalt 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 subagreemeats.However,re- such a description shall;not contain
cipients may set standards for sitna- features which unduly restrict com-
tions in which the financial interest is petition.
not substantial or the gift is an unso- (ii) Requirements which the bidder/
United item of nnminal value. The offeror must fulfill and all other far.-
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 offi- (iii) A description, whenever prat-
cors, employees, or agents of the re- ticable, of technical requirements in
cipient. terms of functions to be performed or
97
•
•
§215.45 2 CFR Ch.II(1-1-12 Edon)
•
performance required, including the propriate for the particular procure-
• range of acceptable characteristics or ment and for promoting the best inter-
minimum acceptable standards. est of the program or project involved.
(iv) The specific features of "brand The "costplentage-of-cost„
• name or equal" descriptions that bid- or "percentage of construction cost"
dare are required to meet when each 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 see-
the metric system of measurement. cessiuny under the terms and condi-
(vi) Preference, to the extent pine- bona of the proposed procurement.
• tiaable 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 pegrrrman08, 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 utilise small businesses, circumstances, contracts with certain
minority-owned firms, and. women's parties are restricted by agencies' im-
business enterprises, whenever pus- plementatioli of E.O.s 12549 and 1e8.9,
Bible. Recipients of Federal awards "Debarment and Suspension."
- shall take all of the following steps to (e)Recipients shall,on request,make
farther this goal. available for the Federal awarding .
(1)Ensure:that small businesses, mi- agency" pre_award review and procurre-
nority-owned firms, and women's bass- input documents, such as request far
ness enterprises are used to the fullest proposalsor invitations.for bids,inde-
extent practicable. pendent cost estimates,etc.,when any
(2)Make information on forthcoming of the following arm iitimis apply.
opportunities available' and arrange co A recipient's procurement prone-
.time frames for purchases and con- dares or operation fails to comply with
tracts to encourage and facilitate par- the procurement standards the Fed-
ticipation by small businesses, minor- era awarding agency's implementation
ity-owned firms, and women's business ur pe•
(a The procurement is
expected
(S) consider in the contract process exceed the small purchase threshold
whether firms competing for larger fixed at 41 u.S.c. 408 (11) (currently
contras intend to subcontract with $25 000) and is to be awarded without
small businesses, minority-owned '
firms, and women's business enter- competition or only one bid or offer is
prises. received in response to a solicitation.
(4) Encourage contracting with con- mated
The procurement, which is ex-
sortiums of small businesses,minority- peoted to exceed the email purchase
owned firma and women's business en- bola' specifies a "brand name"
terprises when a contract is too large Product
for one of these firms to%%sidle individ- (4) T� proposed award over the
rally. small purchase ;threshold is to be
(5)Use the services and assistance,as awarded to other than the apparent
appropriate, of such organisations as low bidder under to sealed bid procure-
appropriate,the Small Business Administration and ment
the Department of Commerce's Minor- (5) A Proposed contract modification
ity Business Development Agency in des the scope of a contract or in •
the solicitation and utilisation of creases the contract.amount by more
small businesses,minority-owned firms ' than the amount of the small purchase
and women's business enterprises. threshold.
(a)The type of procuring instruments
used(e.g.,fixed price contracts,cost re- 215.45 Cast and price smalyais.
imbursable contracts, purchase orders, Some form of cost or price analysis
• and incentive contracts)shall be deter- shall be made and documented in the
mined by the recipient but shall be ap- procurement files in, connection with
98
Circulars
ONNisand Guidance §215.48
every procurement action. Price anal- conditions where the Contract may be
ysis may be accomplished in various terminated because of circumstances
ways, including the coon of beyond the'control of the
price quotations submitted, market (c) Except as otherwise
and required
prices with discoants.Cost indicts, together statute, an award that requires the
view and evaluation of�element of Contraction is the re- contracting or or saboontracting) t
cost to determine reasonableness, shall provide for the recipient to follow
allocability and allowability. its own requirements relating to bid
f 815ul6 Proou ,�, guarantees, Performance bonds, and
Payment bonds unless the construction
Procurement records and files for
contract or sabc
purchases in excess of the smallonus t o sub-
�` $100,000. For those Contracts or sub-
chase threshold shall include the fol- contracts exceeding $100,000, the Fed-
lowing at a minimums
(a)Basis for contractor selection; bonding d awardingl agency may accept the •
(b)Justification for lack of copolicy and thereq Federal of award-
tionthe
when co ��'' recipient, provided the Federal mpetitive bids or offers tug agency has made a determination
are not obtained;and that the Federal Government's interest
(a)Basis for award cost or price. is adequately protected. If such a de-
f318.47 termination has not been made, the
A system for contract administration lows. um requirements shall be as fol-
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
formance and document, as a instrument a
priate, whether contractors have me up cceptance of his seaman that the bidder shall,
the terms, conditions and specifics- such con bid, may be
talons of the contract. . required within the time specified.
$ffid.48 Contract provisions. (2)A performance bond on the part of
the conThe recipient shall include, in addi- oontraot��rprice. for A ` e1r percent of the
tion to provisions to define a sound and is one executed in bond"formence with
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. (8)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 me 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 81 CFR part
the recipient,including the manner by 228,"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
dittoes 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
§215.50 2 CFR Ch.11(1-1-12 Evian)
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 an- award,brief information on each of the
thorised representatives,shall have ao- following.
awe to any books, documents, papers (1).A comparison of actual mom-
and records of the contractor which are piishments 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.
sariptions. of programs or projects can be readily
(e) All contracts, including mail quantified, such quantitative data
purchases, awarded by recipients and should be related to curet data for corn-
their contractors Abaft contain the pro- natation of unit costs.'
cerement provisions of appendix A to (2) Reasons why established goals
this part,as applicable. were not met,if appropriate.
(3) Other pertinent information in-
REPORTs AND nnconDs eluding, when appropriate, analysis
and explanation of cost overrcns or
0216.59 of reports and high unit costs.records.
(e)Recipients shall not be required to
sections 215.51 through 215.53 Bet submit more than the original and two
forth the procedures for monitoring copies of performance reports.
and reporting on the recipient's finan- (1) Recipients shall immediately no-
dal and program performance and the t>f9 the Federal awarding agency of de-
necessary standard reporting forms. velopmente that have a significant its-
They also set forth record retention re- Pact on the award-supported activities.
4nirets. Also,notification shall be given In the
case of problems, delays, or adverse
grs5f menhoring and reporting pro. conditions which materially impair the
gram performance, ability to meet the objectives of the
m(a(a) Recipients are responsible for award.This notification shall include a
Re and ism are po statement of the action taken or con-
managing project, templated, and any assistance needed
program, subaward, function or activ- to resolve the situation.
•
its-supported by the award.Recipients (g) Federal awarding agencies may
shell monitor snbawards to ensure sub- make site visits,as needed.
reeitenes delineated ihave met the and t require- anFederal awarding agencies shall
•) The Federal awarding agency OP comply with clearancee requirements r-
shell Prescribe thece d 15 when rerecipients.
per-
shill with formaaae data from redpients.
which the performance reports shall be
submitted. Except as provided in 1215.52 Irmancial reporting.
g 215.51(1), performance reports shall (a)The following forms or such other
not be required more frequently than forms as may be approved by OBdB are
quarterly or, less frequently than an- anthorissed for obtaining financial in-
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 toe Reportt,
be due 30 days after the reporting Pe- (1) Each Federal awarding agency
riod.The Federal awarding agency may shall require recipients to use the SF •
-
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 lien of these requirements.The final or programs.A Federal awarding agen-
performance reports are due 90 cal- cy may, however, have the option of
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
(a)If inappropriate,ate,a final technical or Reimbursement, or SF-272, Report
or performance report shall not be re- of Federal Cash Transactions,is deter-
quired after completion of the project, mined to provide adequate information
100
OMB Cht s and Guldcmce §215.52
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 agenov submit not more than the original and •
shall prescribe whether the report shall two copies of the SF-272 15 calendar
be on a cash or acorns' basis. If the days following the end of each quarter.
Federal awarding agency requires ac- The Federal awarding agencies may re-
cruel information and the recipient's quire a monthly report from those re-
accounting records are not normally agents receiving advances totaling$1
kept on the accrual basis,the recipient minion or more per year.
shall not be required to convert its no- (v) Fedemt awarding agencies may
oonnting system, but shall develop waive the requirement for submission
snob aocsraal information through best of the SF-272 for any one of the fol-
estimates based on an analysis of the lowing reasons;
dooumentat}on on band. (A).When. monthly advances do not
(iii) The Federal awarding agenoy exceeds per recipient, provided
shall determine the frequency of the that such advances are mr+nitored
7Finanalel Statue Report for each
project or program, considering the through other forms contained in this
section;
size and complexity of the particular wo
project or pram- However, the re- (B)1 9n the Federal awarding agen-
port shall not be required more ire- cy's opinion,the recipient's accounting
•
quently them quarterly or less fre- controls are.adequate to minimize ex-
quently than annually. A final report cessive Federal advance;or,
Rival 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-
elmll require recipients to submit the cy needs additional information or
SF-269 or SF-269A (an original and no more f1equent • the following
more the.» two copies)no later than 30 shall be observed.
days after the end of each specified re- (1) When additional information is
porting period for quarterly and semi_ needed to comply with legislative re-
annual reports, and 90 oaingoar days quirements,Federal awarding agencies
for annual and final r8p0rts. Exten- shall issue instructions to require re-
sions of reporting due dates may be ap- aipients to submit sach information
proved by the Federal awarding agency under the"Remarks"section of the re-
upon request of the recipient.
(2) SF-272, Report of Federal Cash • (2) When a Federal awarding agency
Transactions. cletermines that a recipient's account-
(i) When fonds are advanced to re- ing system does not meet the standards
cipients the Federal awarding agency in §215.21, additional pertinent infor-
ebstli require each recipient to submit matron to further monitor awards may
the SF472 and, when necessary, its be obtained upon written notice to the
con • ation sheet, SF-Z72a. The Fed- recipient until such time as the system
oral awarding agency shall use this re- is brought up to standard.The Federal
port to monitor each advanced to re- awarding may, in obtaining this in-
cipienis and to obtain disbursement in- formation, shall comply with report
formation for each agreement with the clearance requirements of 5 CFR part
recipients. 1320.
(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
quiremeats in the "Remarks" section any report if not necessary.
of the report. (4) Federal awarding agencies may
(iii)When practical and deemed nee- 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 Ironic outputs in lieu of prescribed for-
advances received in excess of three mats.
101
•
§215.53 2 CFR Ch.II(1-1-12 Edon)
(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 eral of the United States, or any of
contributes to the accuracy of report- their duly authorised representatives,
ing' have the right of timely and unre-
stricted
f afar mica and access mat access to any ebcoks, of re-
°a'e' ,nand papers, or other records re-
s.
cipients that are pertinent to the
(a) This section sets forth require- awards, in order to make audits, ex--
meats 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 ao-
impose any other record retention or cuss to a recipient's personnel for the
.access requirements upon recipients. purpose of interview and discussion re-
(b)Financial records,supporting don- hated to each documents.The rights of
uments, statistical records, and all access in this paragraph are not Um-
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 tamed.
the final expenditure report or, for (f) Unless required by statute, no
awards that are renewed quarterly or Federal awarding agency shall place
alimony,from the date of the submis- restrictions on recipients that limit
sion of the quarterly or annual Sean- Public access to the records of recipi-
cial report, as authorised by the Fed- ents that are pertinent to an award,m-
oral awarding agency. The only creep- 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 Tnfermsr
tamed until all litigation, claims or lion 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 ad-
(2) Records for real property and locations plans, etc. Paragraphs (g)(1)
equipment acquired with Federal funds and i(gX2) 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 commutations or proposals,cost slime-
maintained by the Federal awarding tion plans, and any Sfrni1ar 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 chargeback
allocations plans, etc. as specified in rates or composite fringe benefit
§215.53(g). rates).
(a)Copies of original records may be (1) If submitted for negotiation. If the
substituted for the original records if recipient submits to the Federal
authorised by the Federal awarding awarding agency or the subrecipient
agency s 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 saP-
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 arrangements 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
oM B Oculars 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 con- regulation; assurance, application, or
potation and its supporting records notice of award, the Federal awarding
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 compata- in.§215.14,take one or more of the fol-
tion. lowing actions, as appropriate'in the
TERMINATION AND ENFORCEMENT Qi( stap�.
(11)) Teemmporarily withhold cash pay-
meats of terms and menu pending correction of the defi-
denay by
the recipient or more severe
Sections 215.61 and 215.62 set forth enforcement action by. the Federal
awarding agency.
uniform suspension,' termination and (2)Disallow(that is,deny both use of
enforcement procedures. fends and any applicable matching
; on. credit for)all or part of the cost of the
Temeinati(a) Awards may be.terminated in (3)activity or action p not in uspend or ter-
whole or in part only if paragraphs minutes the current awardartly . or\ (a)(1),(2)or(3)of this section apply. (4) Withhold further awards for the
(1)BY the Federal awarding agency, projector program.
if a recipient materially fails to corn- (5)Take other remedies that may be
ply with the terms and conditions of an legally available.
award. (b)Hearings and appeals.In taking an
(2) By the Federal awarding agency enforcement action, the awarding
with the consent of the recipient, in age 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
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
to be terminated. the action involved.
(3)By the recipient upon sending to (e) weds of suspension and tenni-
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 termi- termination of an award are not allow-
nation,'the portion to be terminate•, able unless the awarding agency e8-
However,if the Federal awarding agen- firmly authorises them in the notice .
ey determines in the case of partial of suspension or termination or subse-
termination that the reduced or modi- quently. Other recipient costs during
fled portion.of the grant will not ac- suspension or after termination which
complish the purposes for which the are necessary and not reasonably
grant was made,it may terminate the avoidable are allowable if paragraphs
grant in its entirety under either pare- (o)(1)and(2)of this section apply.
graphs(a)(1)or(2)of this section. (1) The!costs result from obligations
(b) If costs are allowed under an which we'a properly incurred by the re-
award, the responsibilities of the re- cipient before the effective date of ens-
cipient referred to in§215.71(a),includ- pension or termination,are not in an-
ing those for property management as tioipatior of it,and in the case of a ter-
applicable, shall be considered in the mination,•are noncancellable. •
termination if the award, and provi- (2) The,costs would be allowable if
sion shall be made for continuing re- the award were not suspended or ea-
aponafbilities of the recipient after ter- pired normally at the end of the fund
urination,as appropriate. ing period in which the termination
4215.82 Enforced takes effect.
(d)Relationship to debarment and sus-
(a)Remedies for noncompliance.If a re- pension. The enforcement remedies
cipient materially fails to comply with identified in this section, including
103
§215.70 2 CFR Ch.N(1-1-12 Evian)
suspension and termination, do not an award,the Federal awarding agency
preclude a recipient from being subject shall retain the right to recover an ap-
to debarment and suspension under propriate amount after fully condd-
E.O.s 125o and 12889 and the Federal eying the recommendations on dis-
awarding agency implementing regala- allowed costs resulting from the final
tines(see"§215.13). audit.
Subpart Awmd 4816 Subsequent ea�!°atasaents and
continuing
Requirements
(a)The closeout of an award does not
1215.70 Purpose. affect any of the following:
Sections 215:71 through 215.73 contain (1)The right of the Federal awarding
closeout procedures and other prose- icy to disallow costs and recover
dares for subsequent disallowances and funds on the basis of a later audit or
adjustments. other review.
(2)The obligation of the recipient to
.215,71 oelmeut 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- transmit
26
lion of the award, all financial, per- (to Auditproperty manag,enientemeats $ .
formanoe,and other reports as required nienats in44 25.31—through 215.37.
by the terms and conditions of the (5) Records retention as required in
award. The Federal awarding agency §215.53.
may approve extensions when re- (b)After closeout of an award,a rein-
. quested by the recipient. tionsbip created under an award may
(b)Vnless the Federal awarding agen- be modified or ended in whole or in
cy authorizes an extension,a.regipient Pert with the consent of the Federal
shall liquidate all obligations incurred awarding and the recipient,
'Comics'the award not later than 90 cal-
enAar days after the,funding period or provided the responsibilities of the re-
the date of completion as specified in. 'cipdent referred to ]n paragraph(a) of
the terms and conditions of the award this section, including those for prop-
or in agency implementing instrum- arty management as applicable, are
Lions. considered and provisions made for
(c) The •Federal awarding agency 43021tinui311g responsibilities of the re-
shall make prompt payments to a re- cipient,as a o te.
alpient for allowable reimbursable (69 FB.26201.,May 11,2004, as amended at 70
wets under the award being closed out. FR 51581,•Aug.31,20051
(d) The recipient shall promptly re- � �
fund any balances of unobligated cash ammats'due*
that the Federal awarding agency has (a) Any funds paid to a recipient in
advanced or paid and that is not an- excess of the amount to which the re-
thorned to be retained by the recipient .cipient is finally determined to be enter
for use in other projects.OMB Circular tied under the terms and conditions of
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 omits (1) Making an administrative offset
after closeout reports are received. ; against other requests for reimburse-
(f) The recipient shall account for meats.
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 an- (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 •
been performed prior to the closeout of law,the Federal awarding agency shall
104
OMB Cacti and Guidance FL 215,App.A
charge interest on an overdue'debt in Port all suspected or reported violations to
accordance with 4 CFR Chapter II, the Federal awarding agem7.
"Federal Claims Collection Stand- `.Contract Work Hours and Safety Standards
ads." dot(40 U.S.C.327-333)--Wlmre applicable,all
contracts awarded by recipients In excess of
A TO PART 815--CONTRACT contractsts and in ex-
APPENDIX
awes of i2800 Sir other contracts that involve
PO 21
the employment of mechanics or laborers
All aontraats, awarded by a recipient in- shall include a provision for compliance with
eluding small purchases, shall contain the Hourssna and and Standards07 ad the Contract tr0t Work
following provisions as applicable: 327 Safety Act (40 ent o
1- CPP ip—All con- , as supplemented by Department of
(V OFR part 5).Under sec-
tracts shall contain a provision requiring tion 102 eeAAct,each contractor shall be •
compliance with N.O.11246, "Equal Employ- required to compute the wages of every me-
ment Opportanity" (30 FR 12812, 12935, 3 chant)and laborer on the basis of a standard
CFR,1964-1965 Comte.,p.289),as amended by work week of 40 hours.Work is excess of the
N.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 •
tanfty,"and as supplemented by regulations not less than 13,4 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." Nimble to construction work and provides
2. "A�"Act(18 mac. that no laborer or mechanic shall be required
874 and 40 U.S.C.276c)—All contracts and sal- to work in surroundings or under working
greats in excess of$2000 for construction or conditions which are unsanitary,hazardous
repair awarded by recipients and enbrecipi or dangerous. Theses requirements do not
enta shall include a provision for compliance apply to the purchases of supplies or-mate-
with the Copeland..Anti_rin mania,Act og rials or articles ordinarily available on the
U.S.C.674),as supplemented by Department open market,or contracts for transportation
of Labor regulations OPCFB part 8, "Con- or tnummission of intelligence.
Con-
tractors and Subcontractors on Public Build-
ingRightsMade or Public Work Financed in Whole or in tract th oe P T i of pe Con or
ir
Part by Loses or Grants from the United a 1,de for
States"). The Act provides that each con- the �,opmentel research or work ts ofll the Federal Government and
tractor or subreaipieat shall be prohibited therecipient in any resulting invention in
from inducing. by any means, any Peru accordance with 37 OFR part 401,"Bights to
ms employed in the ootructIon,completion,or Inventions Made by Nonprofit Organisations
Moir of Public work,to give uP aRY Port of and Small Business Firms under Govern-
the compensation.to which he is otherwise meat Grants, Contracts and Cooperative
entitled.The remnant shall report au ens- Agreements,,'and any Ming regale-
pected or reported violations to the Federal bons issued by the awarding agency.
awarding agency. 6. Clean Air Act(42 U.S.C. 7401 et seq.)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 subgranis of amounts in excess of
awarded by the recipients and subrecipients $100,000 shall contain a provision that re-
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 regale.
U.S.C.276a to a-7) and as supplemented by bons issued pursuant to the Clean Air Act
Department of Labor regulations (29 CFR (42 U.S.C.7401 et seq.)and the Federal Water
part 5,"Labor Standards Provisions Appliica- Pollution Control Act as amended(33 U.S.C.
his'to Contracts Governing Federally Fi- 1251 et seq.).Violations shall be reported to
maned and Assisted Construction"). Under the Federal awarding agency and the Re-
this Act,contractors shall be required to pay gional. Office of the Environmental Protec-
•
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, contactor; award of$100,600 or more shall file the re-
shall be required to pay wages not lass 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 organisation 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
wage determination.The recipient shall re- or employee of Congress,or an employee of a
105
51910 Federal Register/Vol. 70, No. 168/Wednesday, August 31, 2005/Rules and Regulations
OFFICE OF MANAGEMENT AND Circular A-87 as revised by the May 10, §225.15 Background.
BUDGET 2004 notice. As part of the government-wide grant
List of Subjects in 2 CFR Part 225 streamlining effort under Public Law
2 CFR Part 225 106-107,Federal Financial Award
Accounting,Grant administration, Management Improvement Act of 1999,
Cost Principles for State,Local,and Grant programs,Reporting and OMB led an interagency workgroup to
Indian Tribal Governments(OMB recordkeeping requirements,State, simplify and make consistent,to the
Circular A-87) local,and Indian tribal governments. extent feasible,the various rules used to
AGENCY:Office of Management and Dated:August a,2005. award Federal grants.An interagency
Budget Joshua B.Bolton, task force was established in 2001 to
ACTION:Relocation of policy guidance to Director. review existing cost principles for
2 CFR chapter II. Authorityand Issuance Federal awards to State,local,and
Indian tribal governments;colleges and
SUMMARY:The Office of Management •For the reasons set forth above,the universities;and non-profit
and Budget(OMB)is relocating Circular Office of Management and Budget organizations.The task force studied
A-87,"Cost Principles for State,Local, amends 2 CFR Subtitle A,Chapter II,by "Selected Items of Cost"in each of the
and Indian Tribal Governments,"to adding a part 225 as set forth below. three cost principles to determine which
Title 2 in the Code of Federal items of costs could be stated
Regulations(2 CFR),Subtitle A,Chapter PART 225—COST PRINCIPLES FOR consistently and/or more clearly.
II,part 225 as part of an initiative to STATE,LOCAL,AND INDIAN TRIBAL
provide the public with a central GOVERNMENTS(OMB CIRCULAR §225.20 Policy.
location for Federal government policies A-87) This part establishes principles and
on grants and other financial assistance standards to provide a uniform
and non procurement agreements. Sec. approach for determining costs and to
p 225.5 Purpose. promote effective program delivery,
the OMB guidance and 2z5.10 Authority p
co-locating the agency regulations 225.15 Background efficiency,and better relationships
provides a good foundation for 225.20 Policy. between governmental units and the
streamlining and simplifying the policy 225.25 Definitions. Federal Government.The principles are
framework for grants and agreements as 225.30 OMB responsibilities. for determining allowable costs only.
part of the efforts to implement the 225.35 Federal agency responsibilities. They are not intended to identify the
Financial Assistance 225.40 Effective date of changes. circumstances or to dictate the extent of
FederalFinancial
Management Improvement Act of 1999 225.45 Relationship to previous issuance. Federal and governmental unit
!; P 225.50 Policy review date. participation in the financing of a
(Pub.L.106-107). 225.55 Information Contact.
DATES:This document is effective Appendix A to Part 225—General Principles particular Federal award.Provision for
August 31,2005.This document for Determining Allowable Costs profit or other increment above cost is
republishes the existing OMB Circular Appendix B to Part 225—Selected Items of outside the scope of this part.
A-87,which alreadyis in effect. Cost
Appendix C to Part 225—State/Local-Wide § ` ` Definitions.
FOR FURTHER INFORMATION CONTACT:Gil Central Service Cost Allocation Plans Definitions of key terms used in this
Tran,Office of Federal Financial Appendix D to Part 225—Public Assistance part are contained in Appendix A to this
Management,Office of Management and Cost Allocation Plans part,Section B.
Budget,telephone 202-395-3052 Appendix E to Part 225—State and Local
(direct)or 202-395-3993(main office) Indirect Cost Rate Proposals §225.30 OMB responsibilities.
and e-mail:Hai_M._Tran®omb.eop.gov. Authority:31 U.S.C.503;31 U.S.C.1111; The Office of Management and Budget
SUPPLEMENTARY INFORMATION:On May 41 U.S.C.405;Reorganization Plan No.2 of (OMB)will review agency regulations
10,2004[69 FR 25970],we revised the 1970;E.O.11541,35 FR 10737,3 CFR,1966- and implementation of this part,and
three OMB circulars containing Federal 1970,p.939. will provide policy interpretations and
cost principles.The purpose of those §225.5 Purpose. assistance to insure effective and
revisions was to simplify the cost This part establishes principles and efficient implementation.Any
principles by making the descriptions of standards for determining costs for exceptions will be subject to approval
similar cost items consistent across the Federal awards carried out through by OMB.Exceptions will only be made
circulars where possible,thereby grants,cost reimbursement contracts, in particular cases where adequate
reducing the possibility of and other agreements with State and justification is presented.
misinterpretation.Those revisions,a local governments and federally- §225.35 Federal agency responsibilities.
result of OMB and Federal agency recognized Indian tribal governments Agencies responsible for
efforts to implement Public Law 106- (governmental units).
107,were effective on June 9,2004. administering programs that involve
In this document,we relocate OMB §225.10 Authority. cost reimbursement contracts,grants,
Circular A-87 to the CFR,in Title 2 This part is issued under the authority and other agreements with
which was established on May 11,2004 of the Budget and Accounting Act of governmental units shall issue
[69 FR 26276]as a central location for 1921,as amended;the Budget and regulations to implement the provisions
OMB and Federal agency policies on Accounting Procedures Act of 1950,as of this part and its appendices.
grants and agreements. amended;the Chief Financial Officers §225.40 Effective date of changes.
Our relocation of OMB Circular A-87 Act of 1990;Reorganization Plan No.2 This part is effective August 31,2005.
does not change the substance of the of 1970;and Executive Order No.11541
circular.Other than adjustments needed ("Prescribing the Duties of the Office of §225.45 Relationship to previous
to conform to the formatting Management and Budget and the issuance.
requirements of the CFR,this notice Domestic Policy Council in the (a)The guidance in this part
relocates in 2 CFR the version of OMB Executive Office of the President"). previously was issued as OMB Circular
Federal Register/Vol. 70, No. 168/Wednesday, August 31, 2005/Rules and Regulations 51911
•
A-87.Appendix A to this part contains 3.Minor items Federal awards(including subawards)except
the guidance that was in Attachment A F.Indirect Costs those with(1)publicly-financed educational
(general principles)to the OMB circular; 1.General institutions subject to,2 CFR part 220,Cost
2.Cost allocation plans and indirect cost Principles for Educational Institutions(OMB
Appendix B contains the guidance that
was in Attachment B(selected items of proposals Circular A-21),and(2)programs
3.Limitation on indirect or administrative administered by publicly-owned hospitals
cost);Appendix C contains the costs and other providers of medical care that are
information that was in Attachment C G.Interagency Services subject to requirements promulgated by the
(state/local-wide central service cost H.Required Certifications sponsoring Federal agencies.However,2 CFR
allocation plans);Appendix D contains General Principles for Determining part 225 does apply to all central service and
the guidance that was in Attachment D Allowable Costs department/agency costs that are allocated or
(public assistance cost allocation plans); A.Purpose and Scope billed to those educational institutions,
and Appendix E contains the guidance 1.Objectives.This Appendix establishes hospitals,and other providers of medical
pp principles for determining the allowable care or services by other State and local
that was in Attachment E(state and costs incurred by State,local,and federally- government departments and agencies.
local indirect cost rate proposals). recognized Indian tribal governments b.All subawards are subject to those
(b)This part supersedes OMB Circular (governmental units)under grants,cost Federal cost principles applicable to the
A-87,as amended May 10,2004,which reimbursement contracts,and other particular organization concerned.Thus,if a
superseded Circular A-87,as amended agreements with the Federal Government subaward is to a governmental unit(other
and issued May 4,1995. (collectively referred to in this appendix and than a college,university or hospital),2 CFR
other appendices to 2 CFR part 225 as part 225 shall apply;if a subaward is to a
§225.50 Policy review date. "Federal awards").The principles are for the commercial organization,the cost principles
This part will have a policy review purpose of cost determination and are not applicable to commercial organizations shall
three years from the date of issuance. intended to identify the circumstances or apply;if a subaward is to a college or
dictate the extent of Federal or governmental university,2 CFR part 220(Circular A-21)
§225.55 Information contact. unit participation in the financing of a shall apply;if a subaward is to a hospital,the
Further information concerning this particularprogram or project.The principles costprin principles
used to hoshe Federal itals shall awarding
apply,
admg
part may be obtained by contacting the are designed to provide that Federal awards ag cY P
Office of Federal Financial bear their fair share of cost recognized under subject to the provisions of subsection A.3.a.
these principles except where restricted or of this Appendix;if a subaward is to some
Management,Financial Standards and prohibited by law.Provision for profit or other non-profit organization,2 CFR part 230,
Reporting Branch,Office of other increment above cost is outside the Cost Principles for Non-Profit Organizations
Management and Budget,Washington, scope of 2 CFR part 225. (Circular A-122),shall apply.
DC 20503,telephone 202-395-3993. 2.Policy guides. c.These principles shall be used as a guide
a.The application of these principles is in the pricing of fixed price arrangements
Appendix A to Part 225-General based on the fundamental premises that: where costs are used in determining the
Principles for Determining Allowable (1)Governmental units are responsible for appropriate price.
Costs the efficient and effective administration of d.Where a Federal contract awarded to a
Table of Contents Federal awards through the application of governmental unit incorporates a Cost
sound management practices. Accounting Standards(GAS)clause,the
A.Purpose and Scope (2)Governmental units assume requirements of that clause shall apply.In
1.Objectives responsibility for administering Federal such cases,the governmental unit and the
2.Policy guides funds in a manner consistent with cognizant Federal agency shall establish an
3.Application underlying agreements,program objectives, appropriate advance agreement on how the
B.Definitions and the terms and conditions of the Federal governmental unit will comply with
1.Approval or authorization of the award. applicable CAS requirements when
awarding or cognizant Federal agency (3)Each governmental unit,in recognition estimating,accumulating and reporting costs
2.Award of its own unique combination of staff, under GAS-covered contracts.The agreement
3.Awarding agency facilities,and experience,will have the shall indicate that 2 CFR part 225(OMB
4.Central service cost allocation plan primary responsibility for employing Circular A-87)requirements will be applied
5.Claim whatever form of organization and to other Federal awards.In all cases,only one
6.Cognizant agency management techniques may be necessary to set of records needs to be maintained by the
7.Common rule assure proper and efficient:rlministration of governmental unit.
B.Contract Federal awards. e.Conditional exemptions.
9.Cost b.Federal agencies should work with (1)OMB authorizes conditional exemption
10.Cost allocation plan States or localities which wish to test from OMB administrative requirements and
11.Cost objective alternative mechanisms for paying costs for cost principles for certain Federal programs
12.Federally-recognized Indian tribal administering Federal programs.The Office with statutorily-authorized consolidated
government of Management and Budget(OMB) planning and consolidated administrative
13.Governmental unit encourages Federal agencies to test fee-for- funding,that are identified by a Federal
14.Grantee department or agency service alternatives as a replacement for agency and approved by the head of the
15.Indirect cost rate proposal current cost-reimbursement payment Executive department or establishment.A
16.Local government methods in response to the National Federal agency shall consult with OMB
17.Public assistance cost allocation plan Performance Review's(NPR) during its consideration of whether to grant
18.State recommendation.The NPR recommended the such an exemption.
C.Basic Guidelines fee-for-service approach to reduce the burden (2)To promote efficiency in State and local
1.Factors affecting allowability of costs associated with maintaining systems for program administration,when Federal non-
2.Reasonable costs charging administrative costs to Federal entitlement programs with common purposes
3.Allocable costs programs and preparing and approving cost have specific statutorily-authorized
4.Applicable credits allocation plans.This approach should also consolidated planning and consolidated
D.Composition of Cost increase incentives for administrative administrative funding and where most of
1.Total cost efficiencies and improve outcomes. the State agency's resources come from non-
2.Classification of costs 3.Application. Federal sources,Federal agencies may
E.Direct Costs a.These principles will be applied by all exempt these covered State-administered,
1.General Federal agencies in determining costs non-entitlement grant programs from certain
2.Application incurred by governmental units under OMB grants management requirements.The
51912 Federal Register/Vol. 70, No. 168/Wednesday, August 31, 2005/Rules and Regulations
exemptions would be from all but the decision is made by the Federal awarding cost rate as described in Appendix E of 2 CFR
allocability of costs provisions of Appendix agency. part 225.
A subsection C.3 of 2 CFR part 225,Cost 6."Cognizant agency"means the Federal 16."Local government"means a county,
Principles for State,Local,and Indian Tribal agency responsible for reviewing, municipality,city,town,township,local
Governments(OMB Circular A-87); negotiating,and approving cost allocation public authority,school district,special
Appendix A,Section C.4 of 2 CFR 220,Cost plans or indirect cost proposals developed district,intrastate district,council of
Principles for Educational Institutions under 2 CFR part 225 on behalf of all Federal governments(whether or not incorporated as
(Circular A-21);Appendix A,subsection A.4 agencies.OMB publishes a listing of a non-profit corporation under State law),
of 2 CFR 230 Cost Principles for Non-Profit cognizant agencies. any other regional or interstate government
Organizations(Circular A-122);and from all 7."Common Rule"means the"Uniform entity,or any agency or instrumentality of a
of the administrative requirements provisions Administrative Requirements for Grants and local government.
of 2 CFR part 215,Uniform Administrative Cooperative Agreements to State end Local 17."Public assistance cost allocation plan"
Requirements for Grants and Agreements Governments;Final Rule"originally issued means a narrative description of the
with Institutions of Higher Education, at 53 FR 8034-8103(March 11,1988).Other procedures that will be used in identifying,
Hospitals,and Other Non-Profit common rules will be referred to by their measuring and allocating all administrative
Organizations(Circular A-110),and the specific titles. costs to all of the programs administered or
agencies'grants management common rule. 8."Contract"means a mutually binding supervised by State public assistance
(3)When a Federal agency provides this legal relationship obligating the seller to agencies as described in Appendix D of 2
flexibility,as a prerequisite to a State's furnish the supplies or services(including CFR part 225.
exercising this option,a State must adopt its construction)and the buyer to pay for them. 18."State"means any of the several States
own written fiscal and administrative It includes all types of commitments that of the United States,the District of Columbia,
requirements for expending and accounting obligate the government to an expenditure of the Commonwealth of Puerto Rico,any
for all funds,which are consistent with the appropriated funds and that,except as territory or possession of the United'States,
provisions of 2 CFR part 225(OMB Circular otherwise authorized,are in writing.In or any agency or instrumentality of a State
A-87),and extend such policies to all addition to bilateral instruments,contracts exclusive of local governments.
subrecipients.These fiscal and include(but are not limited to):Awards and C.Basic Guidelines
administrative requirements must be notices of awards;job orders or task orders 1.Factors affecting allowability of costs.To
sufficiently specific to ensure that:Funds are issued under basic ordering agreements; be allowable under Federal awards,costs
used in compliance with all applicable letter contracts;orders,such as purchase must meet the following general criteria:
Federal statutory and regulatory provisions, orders,under which the contract becomes a Be necessary and reasonable for proper
costs are reasonable and necessary for effective by written acceptance or and efficient performance and administration
operating these programs,and funds are not performance;and,bilateral contract of Federal awards.
used for general expenses required to carry modifications.Contracts do not include b. allo to Federal awards under the
out other responsibilities of a State or its grants and cooperative agreements covered provisions of 2 2 CFR part 225.
subrecipients. , by 31 U.S.C.6301 et seq. c.Be authorized or not prohibited under
' tons 9."Cost"means an amount as determined State or local laws anyor regulations.
B.Definitions d.Conform to limitations or exclusions
1."Approval or authorization of the on a cash,accrual,or other basis acceptable set forth in these principles,Federal laws,
awarding or cognizant Federal agency" to the Federal awarding or cognizant agency. terms and conditions of the Federal award,
means documentation evidencing consent It does not include transfers to a general or or other governing regulations as to types or
prior to incurring a specific cost.If such costs similar fund. amounts of cost items.
are specifically identified in a Federal award 10."Cost allocation plan"means central e.Be consistent with policies,regulations,
document,approval of the document service cost allocation plan,public assistance and procedures that apply uniformly to both
constitutes approval of the costs.If the costs cost allocation plan,and indirect cost rate Federal awards and other activities of the
are covered by a State/local-wide cost proposal.Each of these terms is further governmental unit.
allocation plan or an indirect cost proposal, defined in this section. f.Be accorded consistent treatment.A cost
approval of the plan constitutes the approval. 11."Cost objective"means a function, may not be assigned to a Federal award as
2."Award"means grants,cost organizational subdivision,contract,grant,or a direct cost if any other cost incurred for the
reimbursement contracts and other other activity for which cost data are needed same purpose in like circumstances has been
agreements between a State,local and Indian and for which costs are incurred. allocated to the Federal award as an indirect
tribal government and the Federal 12."Federally-recognized Indian tribal cost.
Government. government"means the governing body or a g.Except as otherwise provided for in 2
3."Awarding agency"means(a)with governmental agency of any Indian tribe, CFR part 225,be determined in accordance
respect to a grant,cooperative agreement,or band,nation,or other organized group or with generally accepted accounting
cost reimbursement contract,the Federal community(including any native village as principles.
agency,and(b)with respect to a subaward, defined in Section 3 of the Alaska Native h.Not be included as a cost or used to meet
the party that awarded the subaward. Claims Settlement Act,85 Stat.688)certified cost sharing or matching requirements of any
4."Central service cost allocation plan" by the Secretary of the Interior as eligible for other Federal award in either the current or
means the documentation identifying, the special programs and services provided a prior period,except as specifically
accumulating,and allocating or developing through the Bureau of Indian Affairs. provided by Federal law or regulation.
billing rates based on the allowable costs of 13."Governmental unit"means the entire i.Be the net of all applicable credits.
services provided by a governmental unit on State,local,or federally-recognized Indian j.Be adequately documented.
a centralized basis to its departments and tribal government,including any component 2.Reasonable costs.A cost is reasonable if,
agencies.The costs of these services may be thereof.Components of governmental units in its nature and amount,it does not exceed
allocated or billed to users. may function independently of the that which would be incurred by a prudent
5."Claim"means a written demand or governmental unit in accordance with the person under the circumstances prevailing at
written assertion by the governmental unit or term of the award. the time the decision was made to incur the
grantor seeking,as a matter of right,the 14."Grantee department or agency"means cost.The question of reasonableness is
payment of money in a sum certain,the the component of a State,local,or federally- particularly important when governmental
adjustment or interpretation of award terms, recognized Indian tribal government which is units or components are predominately
or other relief arising under or relating to the responsible for the performance or federally-funded.In determining
award.A voucher,invoice or other routine administration of all or some part of a reasonableness of a given cost,consideration
request for payment that is not a dispute Federal award. shall be given to:
when submitted is not a claim.Appeals,such 15."Indirect cost rate proposal"means the a.Whether the cost is of a type generally
as those filed by a governmental unit in documentation prepared by a governmental recognized as ordinary and necessary for the
response to questioned audit costs,are not unit or component thereof to substantiate its operation of the governmental unit or the
considered claims until a final management request for the establishment of an indirect performance of the Federal award.
Federal Register/Vol. 70, No. 168/Wednesday, August 31, 2005/Rules and Regulations 51913
b.The restraints or requirements imposed either direct or indirect under every of the direct salary and wage cost of
by such factors as:Sound business practices; accounting system.A cost may be direct with providing the service(excluding overtime,
arm's-length bargaining;Federal,State and respect to some specific service or function, shift premiums,and fringe benefits)may be
other laws and regulations;and,terms and but indirect with respect to the Federal used in lieu of determining the actual
conditions of the Federal award. award or other final cost objective.Therefore, indirect costs of the service.These services
c.Market prices for comparable goods or it is essential that each item of cost be treated do not include centralized services included
services. consistently in like circumstances either as a in central service cost allocation plans as
d.Whether the individuals concerned direct or an indirect cost.Guidelines for described in Appendix C to this part.
acted with prudence in the circumstances determining direct and indirect costs charged H.Required Certifications.Each cost
considering their responsibilities to the to Federal awards are provided in the allocation plan or indirect cost rate proposal
governmental unit,its employees,the public sections that follow. required by Appendices C and E to this part
at large,and the Federal Government. E.Direct Costs must comply with the following:
e.Significant deviations from the 1.General.Direct costs are those that can 1.No proposal to establish a cost allocation
established practices of the governmental be identified specifically with a particular plan or an indirect cost rate,whether
unit which may unjustifiably increase the final cost objective. submitted to a Federal cognizant agency or
Federal award's cost. 2.Application.Typical direct costs maintained on file by the governmental unit,
3.Allocable costs. chargeable to Federal awards are: shall be acceptable unless such costs have
a.A cost is allocable to a particular cost a.Compensation of employees for the time been certified by the governmental unit using
objective if the goods or services involved are devoted and identified specifically to the the Certificate of Cost Allocation Plan or
chargeable or assignable to such cost performance of those awards. Certificate of Indirect Costs as set forth in
objective in accordance with relative benefits b.Cost of materials acquired,consumed,or Appendices C and E to this part.The
received. expended specifically for the purpose of certificate must be signed on behalf of the
b.All activities which benefit from the those awards. governmental unit by an individual at a level
governmental unit's indirect cost,including c.Equipment and other approved capital no lower than chief financial officer of the
unallowable activities and services donated expenditures. governmental unit that submits the proposal
to the governmental unit by third parties, d.Travel expenses incurred specifically to or component covered by the proposal.
will receive an appropriate allocation of carry out the award. 2.No cost allocation plan or indirect cost
indirect costs. 3.Minor items.Any direct cost of a minor rate shall be approved by the Federal
c.Any cost allocable to a particular Federal amount may be treated as an indirect cost for Government unless the plan or rate proposal
award or cost objective under the principles reasons of practicality where such accounting has been certified.Where it is necessary to
provided for in 2 CFR part 225 may not be treatment for that item of cost is consistently establish a cost allocation plan or an indirect
charged to other Federal awards to overcome applied to all cost objectives. cost rate and the governmental unit has not
fund deficiencies,to avoid restrictions F.Indirect Costs submitted a certified proposal for
imposed by law or terms of the Federal 1.General.Indirect costs are those: establishing such a plan or rate in accordance
awards,or for other reasons. Incurred for a common or joint purpose with the requirements,the Federal
d.Where an accumulation of indirect costs benefiting more than one cost objective,and Government may either disallow all indirect
will ultimately result in charges to a Federal not readily assignable to the cost objectives costs or unilaterally establish such a plan or
award,a cost allocation plan will be required s ecificall benefitted,without effort rate.Such a plan or rate may be based upon
as described in Appendices C,D,and E to disproportionate to the results achieved.The audited historical data or such other data that
this part. term"indirect costs,"as used herein,applies have been furnished to the cognizant Federal
4.Applicable credits. to costs of this type originatingin the grantee agency and for which it can be demonstrated
a.Applicable credits refer to those receiptsthat all unallowable costs have been
or reduction of expenditure-type transactions department,as well as those incurred-by other departments in supplyingods, excluded.When a cost allocation plan or
that offset or reduce expense items allocable services, facilities. facilitate equitable indirect cost rate is unilaterally established
to Federal awards as direct or indirect costs. the Federal Government because of failure
Examples of such transactions are:Purchase distribution of indirect expenses to the cost bythe governmental unit to submit a certified
discounts,rebates of allowances,recoveries objectives served,it may be necessary to
proposal,the plan or rate established will be
or'indemnities on losses,insurance refunds establish a number of pools of indirect costs
or rebates,and adjustments of overpayments within a governmental unit department or in set to ensure that potentially unallowable
1costs will not be reimbursed.
or erroneous charges.To the extent that such other agencies providing services to a
credits accruing to or received by the governmental unit department.Indirect cost Appendix B to Part 225—Selected Items
governmental unit relate to allowable costs, pools should be distributed to benefitted cost of Cost
they shall be credited to the Federal award objectives on bases that will produce an
either as a cost reduction or cash refund,as equitable result in consideration of relative Table of Contents
appropriate. benefits derived. 1.Advertising and public relations costs
b.In some instances,the amounts received 2.Cost allocation plans and indirect cost 2.Advisory councils
from the Federal Government to finance proposals.Requirements for development 3.Alcoholic beverages
activities or service operations of the and submission of cost allocation plans and 4.Audit costs and related services
governmental unit should be treated as indirect cost rate proposals are contained in 5.Bad debts
applicable credits.Specifically,the concept Appendices C,D,and E to this part. 6.Bonding costs
of netting such credit items(including any 3.Limitation on indirect or administrative 7.Communication costs
amounts used to meet cost sharing or costs. 8.Compensation for personal services
matching requirements)should be recognized a.In addition to restrictions contained in 9.Contingency provisions
in determining the rates or amounts to be 2 CFR part 225,there may be laws that 10.Defense and prosecution of criminal and
charged to Federal awards.(See Appendix B further limit the amount of administrative or civil proceedings,and claims
to this part,item 11,"Depreciation and use indirect cost allowed. 11.Depreciation and use allowances
allowances,"for areas of potential b.Amounts not recoverable as indirect 12.Donations and contributions
application in the matter of Federal financing costs or administrative costs under one 13.Employee morale,health,and welfare
of activities.) Federal award may not be shifted to another costs
D.Composition of Cost Federal award,unless specifically authorized 14.Entertainment costs
1.Total cost.The total cost of Federal by Federal legislation or regulation. 15.Equipment and other capital
awards is comprised of the allowable direct G.Interagency Services.The cost of expenditures
cost of the program,plus its allocable portion services provided by one agency to another 16.Fines and penalties
of allowable indirect costs,less applicable within the governmental unit may include 17.Fund raising and investment management
credits. allowable direct costs of the service plus a costs
2.Classification of costs.There is no pro rate share of indirect costs.A standard 18.Gains and losses on disposition of
universal rule for classifying certain costs as indirect cost allowance equal to ten percent depreciable property and other capital
51914 Federal Register/Vol. 70, No. 168/Wednesday, August 31, 2005/Rules and Regulations
assets and substantial relocation of (1)Costs specifically required by the uncollectable accounts and other claims,
Federal programs Federal award; related collection costs,and related legal
19.General government expenses (2)Costs of communicating with the public costs,are unallowable.
20.Goods or services for personal use and press pertaining to specific activities or 6.Bonding costs.
21.Idle facilities and idle capacity accomplishments which result from a.Bonding costs arise when the Federal
22.Insurance and indemnification performance of Federal awards(these costs Government requires assurance against
23.Interest are considered necessary as part of the financial loss to itself or others by reason of
24.Lobbying outreach effort for the Federal award);or the act or default of the governmental unit.
25.Maintenance,operations,and repairs (3)Costs of conducting general liaison with They arise also in instances where the
26.Materials and supplies costs news media and government public relations governmental unit requires similar assurance.
27.Meetings and conferences officers,to the extent that such activities are Included are such bonds as bid,performance,
28.Memberships,subscriptions,and limited to communication and liaison payment,advance payment,infringement,
professional activity costs necessary keep the public informed on and fidelity bonds.
29.Patent costs matters of public concern,such as notices of b.Costs of bonding required pursuant to
30.Plant and homeland security costs Federal contract/grant awards,financial the terms of the award are allowable.
31.Pre-award costs matters,etc. c.Costs of bonding required by the
32.Professional service costs e.Costs identified in subsections c and d governmental unit in the general conduct of
33.Proposal costs if incurred for more than one Federal award its operations are allowable to the extent that
34.Publication and printing costs or for both sponsored work and other work such bonding is in accordance with sound
35.Rearrangement and alteration costs of the governmental unit,are allowable to the business practice and the rates and premiums
36.Reconversion costs extent that the principles in Appendix A to are reasonable under the circumstances.
37.Rental costs of building and equipment this part,sections E.("Direct Costs")and F. 7.Communication costs.Costs incurred for
38.Royalties and other costs for the use of ("Indirect Costs")are observed. telephone services,local and long distance
patents f.Unallowable advertising and public telephone calls,telegrams,postage,
39.Selling and marketing relations costs include the following: messenger,electronic or computer
40.Taxes (1)All advertising and public relations transmittal services and the like are
41.Termination costs applicable to costs other than as specified in subsections allowable.
sponsored agreements 1.c,d,and e of this appendix; 8.Compensation for personal services.
42.Training costs (2)Costs of meetings,conventions, a.General.Compensation for personnel
43.Travel costs convocations,or other events related to other services includes all remuneration,paid
Sections 1 through 43 provide principles to activities of the governmental unit, currently or accrued,for services rendered
be applied in establishing the allowability or including: during the period of performance under
unallowability of certain items of cost.These (a)Costs of displays,demonstrations,and Federal awards,including but not necessarily
principles apply whether a cost is treated as exhibits; limited to wages,salaries,and fringe benefits.
direct or indirect.A cost is allowable for (b)Costs of meeting rooms,hospitality The costs of such compensation are
Federal reimbursement only to the extent of suites,and other special facilities used in allowable to the extent that they satisfy the
benefits received by Federal awards and its conjunction with shows and other special specific requirements of this and other
conformance with the general policies and events;and appendices under 2 CFR Part 225,and that
principles stated in Appendix A to this part. (c)Salaries and wages of employees the total compensation for individual
Failure to mention a particular item of cost engaged in setting up and displaying employees:
in these sections is not intended to imply exhibits,making demonstrations,and (1)Is reasonable for the services rendered
that it is either allowable or unallowable; providing briefings; and conforms to the established policy of the
rather,determination of allowability in each (3)Costs of promotional items and governmental unit consistently applied to
case should be based on the treatment or memorabilia,including models,gifts,and both Federal and non-Federal activities;
standards provided for similar or related souvenirs; (2)Follows an appointment made in
items of cost. (4)Costs of advertising and public relations accordance with a governmental unit's laws
1.Advertising and public relations costs. designed solely to promote the governmental and rules and meets merit system or other
a.The term advertising costs means the unit. requirements required by Federal law,where
costs of advertising media and corollary 2.Advisory councils.Costs incurred by applicable;and
administrative costs.Advertising media advisory councils or committees are (3)Is determined and supported as
include magazines,newspapers,radio and allowable as a direct cost where authorized provided in subsection h.
television,direct mail,exhibits,electronic or by the Federal awarding agency or as an b.Reasonableness.Compensation for
computer transmittals,and the like. indirect cost where allocable to Federal employees engaged in work on Federal
b.The term public relations includes awards. awards will be considered reasonable to the
community relations and means those 3.Alcoholic beverages.Costs of alcoholic extent that it is consistent with that paid for
activities dedicated to maintaining the image beverages are unallowable. similar work in other activities of the
of the governmental unit or maintaining or 4.Audit costs and related services. governmental unit.In cases where the kinds
promoting understanding and favorable a.The costs of audits required by,and of employees required for Federal awards are
relations with the community or public at performed in accordance with,the Single not found in the other activities of the
large or any segment of the public. Audit Act,as implemented by Circular A- governmental unit,compensation will be
c.The only allowable advertising costs are 133,"Audits of States,Local Governments, considered reasonable to the extent that it is
those which are solely for: and Non-Profit Organizations"are allowable. comparable to that paid for similar work in
(1)The recruitment of personnel required Also see 31 U.S.C.7505(b)and section 230 the labor market in which the employing
for the performance by the governmental unit ("Audit Costs")of Circular A-133. government competes for the kind of
of obligations arising under a Federal award; b.Other audit costs are allowable if employees involved.Compensation surveys
(2)The procurement of goods and services included in a cost allocation plan or indirect providing data representative of the labor
for the performance of a Federal award; cost proposal,or if specifically approved by market involved will be an acceptable basis
(3)The disposal of scrap or surplus the awarding agency as a direct cost to an for evaluating reasonableness.
materials acquired in the performance of a award. c.Unallowable costs.Costs which are
Federal award except when governmental c.The cost of agreed-upon procedures unallowable under other sections of these
units are reimbursed for disposal costs at a engagements to monitor subrecipients who principles shall not be allowable under this
predetermined amount;or are exempted from A-133 under section section solely on the basis that they
(4)Other specific purposes necessary to 200(d)are allowable,subject to the constitute personnel compensation.
meet the requirements of the Federal award. conditions listed in A-133,section 230(b)(2). d.Fringe benefits.
d.The only allowable public relations 5.Bad debts.Bad debts,including losses (1)Fringe benefits are allowances and
costs are: (whether actual or estimated)arising from services provided by employers to their
Federal Register/Vol. 70, No. 168/Wednesday, August 31, 2005/Rules and Regulations 51915
employees as compensation in addition to agency may agree to an extension of the six (5)To be allowable in the current year,the
regular salaries and wages.Fringe benefits month period if an appropriate adjustment is PRHB costs must be paid either to:
include,but are not limited to,the costs of made to compensate for the timing of the (a)An insurer or other benefit provider as
leave,employee insurance,pensions,and charges to the Federal Government and current year costs or premiums,or
unemployment benefit plans.Except as related Federal reimbursement and the (b)An insurer or trustee to maintain a trust
provided elsewhere in these principles,the governmental unit's contribution to the fund or reserve for the sole purpose of
costs of fringe benefits are allowable to the pension fund.Adjustments maybe made by providing post-retirement benefits to retirees
extent that the benefits are reasonable and are cash refund or other equitable procedures to and other beneficiaries.
required by law,governmental unit-employee compensate the Federal Government for the (6)The Federal Government shall receive '
agreement,or an established policy of the time value of Federal reimbursements in an equitable share of any amounts of
governmental unit. excess of contributions to the pension fund. previously allowed post-retirement benefit
(2)The cost of fringe benefits in the form (3)Amounts funded by the governmental costs(including earnings thereon)which
of regular compensation paid to employees unit in excess of the actuarially determined revert or inure to the governmental unit in
during periods of authorized absences from amount for a fiscal year may be used as the the form of a refund,withdrawal,or other
the job,such as for annual leave,sick leave, governmental unit's contribution in future credit.
holidays,court leave,military leave,and periods. g.Severance pay.
other similar benefits,are allowable if:They (4)When a governmental unit converts to (1)Payments in addition to regular salaries
are provided under established written leave an acceptable actuarial cost method,as and wages made to workers whose
policies;the costs are equitably allocated to defined by GAAP,and funds pension costs employment is being terminated are
all related activities,including Federal in accordance with this method,the allowable to the extent that,in each case,
awards;and,the accounting basis(cash or unfunded liability at the time of conversion they are required by law,employer-employee
accrual)selected for costing each type of shall be allowable if amortized over a period agreement,or established written policy.
leave is consistently followed by the of years in accordance with GAAP. (2)Severance payments(but not accruals)
governmental unit. (5)The Federal Government shall receive associated with normal turnover are
(3)When a governmental unit uses the an equitable share of any previously allowed allowable.Such payments shall be allocated
cash basis of accounting,the cost of leave is pension costs(including earnings thereon) to all activities of the governmental unit as
recognized in the period that the leave is which revert or inure to the governmental an indirect cost.
taken and paid for.Payments for unused unit in the form of a refund,withdrawal,or (3)Abnormal or mass severance pay will
other credit. be considered on a case-by-case basis and is
leave when an employee retires or terminates
E Post-retirement health benefits.Post- allowable only if approved by the cognizant
employment are allowable in the year of
payment provided they are allocated as a retirement health benefits(PRHB)refers to Federal agency.
general administrative expense to all costs of health insurance or health services h.Support of salaries and wages.These
activities of the governmental alive expense
or not included in a pension plan covered by standards regarding time distribution are in
component.of subsection 8.e.of this appendix for retirees addition to the standards for payroll
P and their spouses,dependents,and documentation.
(4)The accrual basis may be only used for survivors.PRHB costs may be computed (1)Charges to Federal awards for salaries
those types of leave for which a liability as using a pay-as-you-go method or an and wages,whether treated as direct or
defined by Generally Accepted Accounting acceptable actuarial cost method in indirect costs,will be based on payrolls
Principles(GAAP)exists when the leave is accordance with established written polices documented in accordance with generally
earned.When a governmental unit uses the of the governmental unit. accepted practice of the governmental unit
accrual basis of accounting,in accordance (1)For PRHB financed on a pay as-you-go and approved by a responsible official(s)of
with GAAP,allowable leave costs are the method,allowable costs will be limited to the governmental unit.
lesser of the amount accrued or funded. those representing actual payments to (2)No further documentation is required
(5)The cost of fringe benefits in the form retirees or their beneficiaries. for the salaries and wages of employees who
of employer contributions or expenses for (2)PRHB costs calculated using an work in a single indirect cost activity.
social security;employee life,health, actuarial cost method recognized by GAAP (3)Where employees are expected to work
unemployment,and worker's compensation are allowable if they are funded for that year solely on a single Federal award or cost
insurance(except as indicated in section 22, within six months after the end of that year. objective,charges for their salaries and wages
Insurance and indemnification);pension Costs funded after the six month period(or will be supported by periodic certifications
plan costs(see subsection e.);and other a later period agreed to by the cognizant that the employees worked solely on that
similar benefits are allowable,provided such agency)are allowable in the year funded.The program for the period covered by the
benefits are granted under established cognizant agency may agree to an extension certification.These certifications will be
written policies.Such benefits,whether of the six month period if an appropriate prepared at least semi-annually and will be
treated as indirect costs or as direct costs, adjustment is made to compensate for the signed by the employee or supervisory
shall be allocated to Federal awards and all timing of the charges to the Federal official having first hand knowledge of the
other activities in a manner consistent with Government and related Federal work performed by the employee.
the pattern of benefits attributable to the reimbursements and the governmental unit's (4)Where employees work on multiple
individuals or group(s)of employees whose contributions to the PRHB fund.Adjustments activities or cost objectives,a distribution of
salaries and wages are chargeable to such may be made by cash refund,reduction in their salaries or wages will be supported by
Federal awards and other activities. current year's PRHB costs,or other equitable personnel activity reports or equivalent
e.Pension plan costs.Pension plan costs procedures to compensate the Federal documentation which meets the standards in
may be computed using a pay-as-you-go Government for the time value of Federal subsection 8.h.(5)of this appendix unless a
method or an acceptable actuarial cost reimbursements in excess of contributions to statistical sampling system(see subsection
method in accordance with established the PRHB fund. 8.h.(6)of this appendix)or other substitute
written policies of the governmental unit. (3)Amounts funded in excess of the system has been approved by the cognizant
(1)For pension plans financed on a pay- actuarially determined amount for a fiscal Federal agency.Such documentary support
as-you-go method,allowable costs will be year may be used as the government's will be required where employees work on:
limited to those representing actual payments contribution in a future period. (a)More than one Federal award,
to retirees or their beneficiaries. (4)When a governmental unit converts to (b)A Federal award and a non-Federal
(2)Pension costs calculated using an an acceptable actuarial cost method and award,
actuarial cost-based method recognized by funds PRHB costs in accordance with this (c)An indirect cost activity and a direct
GAAP are allowable for a given fiscal year if method,the initial unfunded liability cost activity,
they are funded for that year within six attributable to prior years shall be allowable (d)Two or more indirect activities which
months after the end of that year.Costs if amortized over a period of years in are allocated using different allocation bases,
funded after the six month period(or a later accordance with GAAP,or,if no such GAAP or
period agreed to by the cognizant agency)are period exists,over a period negotiated with (e)An unallowable activity and a direct or
allowable in the year funded.The cognizant the cognizant agency. indirect cost activity.
51916 Federal Register/Vol. 70, No. 168/Wednesday, August 31, 2005/Rules and Regulations
(5)Personnel activity reports or equivalent claimed as allowable costs under Federal b.The computation of depreciation or use
documentation must meet the following awards. allowances shall be based on the acquisition
standards: i.Donated services. cost of the assets involved.Where actual cost
(a)They must reflect an after-the-fact (1)Donated or volunteer services may be records have not been maintained,a
distribution of the actual activity of each furnished to a governmental unit by reasonable estimate of the original
employee, professional and technical personnel, acquisition cost may be used.The value of
(b)They must account for the total activity consultants,and other skilled and unskilled an asset donated to the governmental unit by
for which each employee is compensated, labor.The value of these services is not an unrelated third party shall be its fair
(c)They must be prepared at least monthly reimbursable either as a direct or indirect market value at the time of donation.
and must coincide with one or more pay cost.However,the value of donated services Governmental or quasi-governmental
periods,and may be used to meet cost sharing or matching organizations located within the same State
(d)They must be signed by the employee. requirements in accordance with the shall not be considered unrelated third
(e)Budget estimates or other distribution provisions of the Common Rule. parties for this purpose.
percentages determined before the services (2)The value of donated services utilized c.The computation of depreciation or use
are performed do not qualify as support for in the performance of a direct cost activity allowances will exclude:
charges to Federal awards but may be used shall,when material in amount,be (1)The cost of land;
for interim accounting purposes,provided considered in the determination of the (2)Any portion of the cost of buildings and
that: governmental unit's indirect costs or rate(s) equipment borne by or donated by the
(i)The governmental unit's system for and,accordingly,shall be allocated a Federal Government irrespective of where
establishing the estimates produces' proportionate share of applicable indirect title was originally vested or where it
reasonable approximations of the activity costs. presently resides;and
actually performed; (3)To the extent feasible,donated services (3)Any portion of the cost of buildings and
(ii)At least quarterly,comparisons of will be supported by the same methods used equipment contributed by or for the
actual costs to budgeted distributions based by the governmental unit to support the governmental unit,or a related donor
on the monthly activity reports are made. allocability of regular personnel services. organization,in satisfaction of a matching
Costs charged to Federal awards to reflect 9.Contingency provisions.Contributions to requirement
adjustments made as a result of the activity a contingency reserve or any similar d.Where the depreciation method is
nts the occurrence of
actually performed may be recorded annually wluwchsicanno on made
ber e foretold with certainty as t followed,the following general criteria
if the quarterly comparisons show the time,intensity,Or with an assurance of their apply:
differences between budgeted and actual (1)The period of useful service(useful life)
happening,are unallowable.The term
costs are less than ten percent;and established in each case for usable capital
(iii)The budget estimates or other "contingency reserve"excludes self assets must take into consideration such
distribution percentages are revised at least insurance reserves(see section 22.c.of this factors as type of construction,nature of the
appendix),pension plan reserves(see section
quarterly,if necessary,to reflect changed g e,),and post-retirement health and other equipment used,historical usage patterns,
circumstances. technological developments,and the renewal
(6)Substitute systems for allocating benefit reserves(section B.£)computed using and replacement policies of the governmental
acceptable actuarial cost methods.
salaries and wages to Federal awards may be 10.Defense and prosecution of criminal unit followed for the individual items or
used in place of activity reports.These classes of assets involved.In the absence of
systems are subject to approval if required byand civil proceedings,and claims. clear evidence indicating that the expected
a.te cognizant agency.Such systems may n act followingdbyc 10 are U.S.C.23unall2wable for consumption of the asset will be significantly
contracts covered 10 C.2324(lc),
include,but are not limited to,random "Allowable costs under defense contracts." greater in the early portions than in the later
moment sampling,case counts,or other (1)Costs incurred in defense of any civil portions of its useful life,the straight line
quantifiable measures of employee effort. or criminal fraud proceeding or similar method of depreciation shall be used.
(a)Substitute systems which use sampling proceeding(including filing of false (2)Depreciation methods once used shall
methods(primarily for Temporary Assistance certification brought by the United States not be changed unless approved by the
to Needy Families(TANF),Medicaid,and where the contractor is found liable or has Federal cognizant or awarding agency.When
other public assistance programs)must meet pleaded nolo contendere to a charge of fraud the depreciation method is introduced for
acceptable statistical sampling standards or similar proceeding(including filing of a application to an asset previously subject to
including: false certification). a use allowance,the annual depreciation
(i)The sampling universe must include all (2)Costs incurred by a contractor in charge thereon may not exceed the amount
of the employees whose salaries and wages connection with any criminal,civil or that would have resulted had the
are to be allocated based on sample results administrative proceedings commenced by depreciation method been in effect from the
except as provided in subsection 8.h.(6)(c)of the United States or a State to the extent date of acquisition of the asset.The
this appendix; provided in 10 U.S.C.2324(k). combination of use allowances and
(ii)The entire time period involved must b.Legal expenses required in the depreciation applicable to the asset shall not
be covered by the sample;and administration of Federal programs are exceed the total acquisition cost of the asset
(iii)The results must be statistically valid allowable.Legal expenses for prosecution of or fair market value at time of donation.
and applied to the period being sampled. claims against the Federal Government are e.When the depreciation method is used
(b)Allocating charges for the sampled unallowable. for buildings,a building's shell may be
employees'supervisors,clerical and support 11.Depreciation and use allowances. segregated from the major component of the
staffs,based on the results of the sampled a.Depreciation and use allowances are building(e.g.,plumbing system,heating,and
employees,will be acceptable. means of allocating the cost of fixed assets to air conditioning system,etc.)and each major
(c)Less than full compliance with the periods benefiting from asset use. component depreciated over its estimated
statistical sampling standards noted in Compensation for the use of fixed assets on useful life,or the entire building(i.e.,the
subsection 8.h.(6)(a)of this appendix may be hand maybe made through depreciation or shell and all components)may be treated as
accepted by the cognizant agency if it use allowances.A combination of the two a single asset and depreciated over a single
concludes that the amounts to be allocated to methods may not be used in connection with useful life.
Federal awards will be minimal,or if it a single class of fixed assets(e.g.,buildings, f.Where the use allowance method is
concludes that the system proposed by the office equipment,computer equipment,etc.) followed,the following general criteria
governmental unit will result in lower costs except as provided for in subsection g. apply:
to Federal awards than a system which Except for enterprise funds and internal (1)The use allowance for buildings and
complies with the standards. service funds that are included as part of a improvements(including land
(7)Salaries and wages of employees used State/local cost allocation plan,classes of improvements,such as paved parking areas,
in meeting cost sharing or matching assets shall be determined on the same basis fences,and sidewalks)will be computed at
requirements of Federal awards must be used for the government-wide financial an annual rate not exceeding two percent of
supported in the same manner as those statements. acquisition costs.
Federal Register/Vol. 70, No. 168/Wednesday, August 31, 2005/Rules and Regulations 51917
(2)The use allowance for equipment will 13.Employee morale,health,and welfare (2)Capital expenditures for special
be computed at an annual rate not exceeding costs. purpose equipment are allowable as direct
63/4 percent of acquisition cost. a.The costs of employee information costs,provided that items with a unit cost of
(3)When the use allowance method is used publications,health or first-aid clinics and/' $5000 or more have the prior approval of the
for buildings,the entire building must be or infirmaries,recreational activities, awarding agency.
treated as a single asset;the building's employee counseling services,and any other (3)Capital expenditures for improvements
components(e.g.,plumbing system,heating expenses incurred in accordance with the to land,buildings,or equipment which
and air condition,etc.)cannot be segregated governmental unit's established practice or materially increase their value or useful life
from the building's shell.The two percent custom for the improvement of working are unallowable as a direct cost except with
limitation,however,need not be applied to conditions,employer-employee relations, the prior approval of the awarding agency.
equipment which is merely attached or employee morale,and employee performance (4)When approved as a direct charge
fastened to the building but not permanently are allowable. pursuant to section 15.b(1),(2),and(3)of this
fixed to it and which is used as furnishings b.Such costs will be equitably apportioned appendix,capital expenditures will be
or decorations or for specialized purposes to all activities of the governmental unit. charged in the period in which the
(e.g.,dentist chairs and dental treatment Income generated from any of these activities expenditure is incurred,or as otherwise
units,counters,laboratory benches bolted to will be offset against expenses. determined appropriate and negotiated with
the floor,dishwashers,modular furniture, 14.Entertainment.Costs of entertainment, the awarding agency.In addition,Federal
carpeting,etc.).Such equipment will be including amusement,diversion,and social awarding agencies are authorized at their
considered as not being permanently fixed to activities and any costs directly associated option to waive or delegate the prior
the building if it can be removed without the with such costs(such as tickets to shows or approval requirement
destruction of,or need for costly or extensive sports events,meals,loy ng,rentals, (5)Equipment and other capital
alterations or repairs,to the building or the transportation,and gratuities)are expenditures are unallowable as indirect
equipment.Equipment that meets these unallowable. costs.However,see section 11 of this
criteria will be subject to the 63/4 percent 15.Equipment and other capital appendix,Depreciation and use allowance,
equipment use allowance limitation. expenditures. for rules on the allowability of use
g.A reasonable use allowance maybe a.For purposes of this subsection 15,the allowances or depreciation on buildings,
negotiated for any assets that are considered following definitions apply: capital improvements,and equipment.Also,
to be fully depreciated,after taking into (1)"Capital Expenditures"means see section 37 of this appendix,Rental costs,
consideration the amount of depreciation expenditures for the acquisition cost of concerning the allowability of rental costs for
previously charged to the government,the land,buildings,and equipment.
estimated useful life remaining at the time of capital assets(equipment,buildings,land),or (6)The unamortized portion of any
expenditures to make improvements to
negotiation,the effect of any increased capital assets that materially increase their equipment written off as a result of a change
maintenance charges,decreased efficiency in capitalization levels may be recovered by
value or useful life.Acquisition cost means
due to age,and any other factors pertinent to the cost of the asset including the cost to put. continuing to claim the otherwise allowable
the utilization of the asset for the purpose use allowances or depreciation on the
it in place.Acquisition cost for equipment,
contemplated for example,means the net invoice price of equipment,or by amortizing the amount to
h.Charges for use allowances or be written off over a period of years
depreciation must be supported by adequate the equipment,including the cost of any negotiated with the cognizant agency.
property records.Physical inventories must modifications,attachments,accessories,or (7)When replacing equipment purchased
auxiliary apparatus necessary to make it
be taken at least once every two years(a in whole or in part with Federal funds,the
usable for the purpose for which it is
statistical sampling approach is acceptable) acquired.Ancillary charges,such as taxes, governmental unit may use the equipment to
to ensure that assets exist,and are in use. be replaced as a trade-in or sell the property
Governmental units will manage equipment duty,protective in transit insurance,freight, and use the proceeds to offset the cost of the
in accordance with State laws and and installation may be included in,or replacement property.
procedures.When the depreciation method is excluded from the acquisition cost in 16.Fines and penalties.Fines,penalties,
followed,depreciation records indicating the accordance with the governmental unit's damages,and other settlements resulting
amount of depreciation taken each period regular accounting practices. from violations(or alleged violations)of,or
must also be maintained. (2)"Equipment"means an article of failure of the governmental unit to comply
12.Donations and contributions. nonexpendable,tangible personal property with,Federal,State,local,or Indian tribal
a.Contributions or donations rendered. having a useful life of more than one year laws and regulations are unallowable except
Contributions or donations,including cash, and an acquisition cost which equals or when incurred as a result of compliance with
property,and services,made by the exceeds the lesser of the capitalization level specific provisions of the Federal award or
governmental unit,regardless of the established by the governmental unit for written instructions by the awarding agency
recipient,are unallowable. financial statement purposes,or$5000. authorizing in advance such payments.
b.Donated services received: (3)"Special purpose equipment"means 17.Fund raising and investment
(1)Donated or volunteer services may be equipment which is used only for research, management costs.
furnished to a governmental unit by medical,scientific,or other technical a.Costs of organized fund raising,
professional and technical personnel, activities.Examples of special purpose including financial campaigns,solicitation of
consultants,and other skilled and unskilled equipment include microscopes,x-ray gifts and bequests,and similar expenses
labor.The value of these services is not machines,surgical instruments,and incurred to raise capital or obtain
reimbursable either as a direct or indirect spectrometers. contributions are unallowable,regardless of
cost.However,the value of donated services (4)"General purpose equipment"means the purpose for which the funds will be used.
may be used to meet cost sharing or matching equipment,which is not limited to research, b.Costs of investment counsel and staff
requirements in accordance with the Federal medical,scientific or other technical and similar expenses incurred to enhance
Grants Management Common Rule. activities.Examples include office equipment income from investments are nnailowable.
(2)The value of donated services utilized and furnishings,modular offices,telephone However,such costs associated with
in the performance of a direct cost activity networks,information technology equipment investments covering pension,self-insurance,
shall,when material in amount,be and systems,air conditioning equipment, or other funds which include Federal
considered in the determination of the reproduction and printing equipment,and participation allowed by this and other
governmental unit's indirect costs or rate(s) motor vehicles. appendices of 2 CFR part 225 are allowable.
and,accordingly,shall be allocated a b.The following rules of allowability shall c.Fund raising and investment activities
proportionate share of applicable indirect apply to equipment and other capital shall be allocated an appropriate share of
costs. expenditures: indirect costs under the conditions described
(3)To the extent feasible,donated services (1)Capital expenditures for general in subsection C.3.b.of Appendix A to this
will be supported by the same methods used purpose equipment,buildings,and land are part.
by the governmental unit to support the unallowable as direct charges,except where 18.Gains and losses on disposition of
allocability of regular personnel services. approved in advance by the awarding agency. depreciable property and other capital assets
•
51918 Federal Register/Vol. 70, No. 168/Wednesday, August 31, 2005/Rules and Regulations
•
and substantial relocation of Federal the general public,such as fire and police, 22.Insurance and indemnification.
programs. unless provided for as a direct cost under a a.Costs of insurance required or approved
a.(1)Gains and losses on the sale, program statute or regulation. and maintained,pursuant to the Federal
retirement,or other disposition of b.For federally-recognized Indian tribal award,are allowable.
depreciable property shall be included in the governments and Councils Of Governments b.Costs of other insurance in connection
year in which they occur as credits or charges (COGs),the portion of salaries and expenses with the general conduct of activities are
to the asset cost grouping(s)in which the directly attributable to managing and allowable subject to the following
property was included.The amount of the operating Federal programs by the chief limitations:
gain or loss to be included as a credit or executive and his staff is allowable. (1)Types and extent and cost of coverage
charge to the appropriate asset cost 20.Goods or services for personal use. are in accordance with the governmental
grouping(s)shall be the difference between Costs of goods or services for personal use of unit's policy and sound business practice.
the amount realized on the property and the the governmental unit's employees are (2)Costs of insurance or of contributions
undepreciated basis of the property. unallowable regardless of whether the cost is to any reserve covering the risk of loss of,or
(2)Gains and losses on the disposition of reported as taxable income to the employees. damage to,Federal Government property are
depreciable property shall not be recognized 21.Idle facilities and idle capacity. unallowable except to the extent that the
as a separate credit or charge under the As used in this section the following terms awarding agency has specifically required or
following conditions: have the meanings set forth below: approved such costs.
(a)The gain or loss is processed through (1)"Facilities"means land and buildings c.Actual losses which could have been
a depreciation account and is reflected in the or any portion thereof,equipment covered by permissible insurance(through a
depreciation allowable under sections 11 and individually or collectively,or any other self-insurance program or otherwise)are
15 of this appendix. tangible capital asset,wherever located,and unallowable,unless expressly provided for in
(b)The property is given in exchange as whether owned or leased by the the Federal award or as described below.
part of the purchase price of a similar item governmental unit. However,the Federal Government will
and the gain or loss is taken into account in (2)"Idle facilities"means completely participate in actual losses of a self insurance
determining the depreciation cost basis of the unused facilities that are excess to the fund that are in excess of reserves.Costs
new item. governmental unit's current needs. incurred because of losses not covered under
(c)A loss results from the failure to (3)"Idle capacity"means the unused nominal deductible insurance coverage
maintain permissible insurance,except as capacity of partially used facilities.It is the provided in keeping with sound management
otherwise provided in subsection 22.d of this difference between:that which a facility practice,and minor losses not covered by
appendix. could achieve under 100 percent operating insurance,such as spoilage,breakage,and
(d)Compensation for the use of the time on a one-shift basis less operating disappearance of small hand tools,which
property was provided through use interruptions resulting from time lost for occur in the ordinary course of operations,
allowances in lieu of depreciation. repairs,setups,unsatisfactory materials,and are allowable.
b.Substantial relocation of Federal awards other normal delays;and the extent to which d.Contributions to a reserve for certain
from a facility where the Federal Government the facility was actually used to meet sell-insurance programs including workers
participated in the financing to another demands during the accounting period.A compensation,unemployment compensation,
facility prior to the expiration of the useful multi-shift basis should be used if it can be and severance pay are allowable subject to
life of the financed facility requires Federal shown that this amount of usage would the following provisions:
agency approval.The extent of the relocation, normally be expected for the type of facility (1)The type of coverage and the extent of
the amount of the Federal participation in the involved.
financing,and the depreciation charged to (4)"Cost of idle facilities or idle capacity" eve been allowed had insue and the rates and rance premiums
would
(including
date may require negotiation of space charges means costs such as maintenance,repair, reinsurance)been purchased to cover the
for Federal awards. housing,rent,and other related costs,e.g., risks.However,provision for known or
c.Gains or losses of any nature arising insurance,interest,property taxes and
from the sale or exchange of property other depreciation or use allowances. reasonably estimated self-insured liabilities,
than the property covered in subsection 18.a. b.The costs of idle facilities are which do not become payable for more than
of this appendix,e.g.,land or included in the unallowable except to the extent that: one year after the provision is made,shall not
fair market value used in any adjustment (1)They are necessary to meet fluctuations exceed the discounted present value of the
resulting from a relocation of Federal awards in workload;or liability.The rate used for discounting the
covered in subsection b.shall be excluded in (2)Although not necessary to meet liability must be determined by giving
computing Federal award costs. fluctuations in workload,they were consideration to such factors as the
19.General government expenses. necessary when acquired and are now idle governmental unit's settlement rate for those
a.The general costs of government are because of changes in program requirements, liabilities and its investment rate of return.
unallowable(except as provided in section efforts to achieve more economical (2)Earnings or investment income on
43 of this appendix,Travel costs).These operations,reorganization,termination,or reserves must be credited to those reserves.
include: other causes which could not have been (3)Contributions to reserves must be based
(1)Salaries and expenses of the Office of reasonably foreseen.Under the exception on sound actuarial principles using historical
the Governor of a State or the chief executive stated in this subsection,costs of idle experience and reasonable assumptions.
of a political subdivision or the chief facilities are allowable for a reasonable Reserve levels must be analyzed and updated
executive of federally-recognized Indian period of time,ordinarily not to exceed one at least biennially for each major risk being
tribal government; year,depending on the initiative taken to insured and take into account any
(2)Salaries and other expenses of a State use,lease,or dispose of such facilities. reinsurance,coinsurance,etc.Reserve levels
legislature,tribal council,or similar local c.The costs of idle capacity are normal related to employee-related coverages will
governmental body,such as a county costs of doing business and are a factor in the normally be limited to the value of claims
supervisor,city council,school board,etc., normal fluctuations of usage or indirect cost submitted and adjudicated but not paid,
whether incurred for purposes of legislation rates from period to period.Such costs are submitted but not adjudicated,and incurred
or executive direction; allowable,provided that the capacity is but not submitted.Reserve levels in excess of
(3)Costs of the judiciary branch of a reasonably anticipated to be necessary or was the amounts based on the above must be
government; originally reasonable and is not subject to identified and justified in the cost allocation
(4)Costs of prosecutorial activities unless reduction or elimination by use on other plan or indirect cost rate proposal.
treated as a direct cost to a specific program Federal awards,subletting,renting,or sale,in (4)Accounting records,actuarial studies,
if authorized by program statute or regulation accordance with sound business,economic, and cost allocations(or billings)must
(however,this does not preclude the or security practices.Widespread idle recognize any significant differences due to
allowability of other legal activities of the capacity throughout an entire facility or types of insured risk and losses generated by
Attorney General);and among a group of assets having substantially the various insured activities or agencies of
(5)Costs of other general types of the same function may be considered idle the governmental unit.If individual
government services normally provided to facilities. departments or agencies of the governmental
Federal Register/Vol. 70, No. 168/Wednesday, August 31, 2005/Rules and Regulations 51919
unit experience significantly different levels shall reduce claims for interest cost by an a.Costs incurred for materials,supplies,
of claims for a particular risk,those amount equal to imputed interest earnings on and fabricated parts necessary to carry out a
differences are to be recognized by the use of excess cash flow,which is to be calculated Federal award are allowable.
separate allocations or other techniques as follows.Annually,non-Federal entities b.Purchased materials and supplies shall
resulting in an equitable allocation. shall prepare a cumulative(from the be charged at their actual prices,net of
(5)Whenever funds are transferred from a inception of the project)report of monthly applicable credits.Withdrawals from general
self-insurance reserve to other accounts(e.g., cash flows that includes inflows and stores or stockrooms should be charged at
general fund),refunds shall be made to the outflows,regardless of the funding source. their actual net cost under any recognized
Federal Government for its share of funds Inflows consist of depreciation expense, method of pricing inventory withdrawals,
transferred,including earned or imputed amortization of capitalized construction consistently applied.Incoming transportation
interest from the date of transfer. interest,and annual interest cost.For cash charges are a proper part of materials and
e.Actual claims paid to or on behalf of flow calculations,the annual inflow figures supplies costs.
employees or former employees for workers' shall be divided by the number of months in c.Only materials and supplies actually
compensation,unemployment compensation, the year(i.e.,usually 12)that the building is used for the performance of a Federal award
severance pay,and similar employee benefits in service for monthly amounts.Outflows may be charged as direct costs.
(e.g.,subsection 8.f.for post retirement consist of initial equity contributions,debt d.Where federally-donated or furnished
health benefits),are allowable in the year of principal payments(less the pro rata share materials are used in performing the Federal
payment provided the governmental unit attributable to the unallowable costs of land) award,such materials will be used without
follows a consistent costing policy and they and interest payments.Where cumulative charge.
are allocated as a general administrative inflows exceed cumulative outflows,interest 27.Meetings and conferences.Costs of
expense to all activities of the governmental shall be calculated on the excess inflows for meetings and conferences,the primary
unit. that period and be treated as a reduction to purpose of which is the dissemination of
f.Insurance refunds shall be credited allowable interest cost.The rate of interest to technical information,are allowable.This
against insurance costs in the year the refund be used to compute earnings on excess cash includes costs of meals,transportation,rental
is received. flows shall be the three-month Treasury bill of facilities,speakers'fees,and other items
g.Indemnification includes securing the dosing rate as of the last business day of that incidental to such meetings or conferences.
governmental unit against liabilities to third month. But see section 14,Entertainment costs,of
persons and other losses not compensated by (5)Interest attributable to fully depreciated this appendix•
insurance or otherwise.The Federal assets is unallowable. 28.Memberships,subscriptions,and
Government is obligated to indemnify the 24.Lobbying. professional activity costs.
governmental unit only to the extent a.General.The cost of certain influencing a.Costs of the governmental technical,
expressly provided for in the Federal award, activities associated with obtaining grants, memberships in business, areal and
except as provided in subsection 22.d of this contracts,cooperative agreements,or loans is professional organizations are allowable.
appendix. an unallowable cost.Lobbying with respect b.Costs of the governmental unit's
h.Costs of commercial insurance that to certain grants,contracts,cooperative technical perns to business,professional,ow and
protects against the costs of the contractor for agreements,and loans shall be governed by technical periodicals are allowable.
correction of the contractor's own defects in the common rule,"New Restrictions on c.Coati of membership in civic and
materials or workmanship are unallowable. Lobbying"(see Section J.24 of Appendix A community,as directial organizationss whthere
23.Interest. to 2 CFR part 220),including definitions,and allowableftheFederal a cost enh approval
y.
a.Costs incurred for interest on borrowed the Office of Management and Budget of the membershiper a i nor
capital or the use of agovernmental unit's "Government-wide Guidance for New d. a Costs yf din in organizations
P substantially engaged in lobbying are
own funds,however represented,are Restrictions on Lobbying"and notices unallowable.
unallowable except as specifically provided published at 54 FR 52306(December 20, 29.Patent costs.
in subsection b.or authorized by Federal 1989),55 FR 24540(June 15,1990),and 57 a.The following costs relating to patent
legislation. FR 1772(January 15,1992),respectively. and copyright matters are allowable:cost of
b.Financing costs(including interest)paid b.Executive lobbying costs.Costs incurred preparing disclosures,reports,and other
or incurred which are associated with the in attempting to improperly influence either documents required by the Federal award
otherwise allowable costs of building directly or indirectly,an employee or officer and of searching the art to the extent
acquisition,construction,or fabrication, of the Executive Branch of the Federal necessary to make such disclosures;cost of
reconstruction or remodeling completed on Government to give consideration or to act preparing documents and any other patent
or after October 1,1980 is allowable subject regarding a sponsored agreement or a costs in connection with the filing and
to the conditions in section 23.b.(1)through regulatory matter are unallowable.Improper prosecution of a United States patent
(4)of this appendix.Financing costs influence means any influence that induces application where title or royalty-free license
(including interest)paid or incurred on or or tends to induce a Federal employee or is required by the Federal Government to be
after September 1,1995 for land or associated officer to give consideration or to act conveyed to the Federal Government;and
with otherwise allowable costs of equipment regarding a federally-sponsored agreement or general counseling services relating to patent
is allowable,subject to the conditions in regulatory matter on any basis other than the and copyright matters,such as advice on
section 23.b.(1)through(4)of this appendix. merits of the matter. patent and copyright laws,regulations,
(1)The financing is provided(from other 25.Maintenance,operations,and repairs. clauses,and employee agreements(but see
than tax or user fee sources)by a bona fide Unless prohibited by law,the cost of utilities, sections 32,Professional service costs,and
third party external to the governmental unit; insurance,security,janitorial services, 38,Royalties and other costs for use of
(2)The assets are used in support of elevator service,upkeep of grounds, patents and copyrights,of this appendix).
Federal awards; necessary maintenance,normal repairs and b.The following costs related to patent and
(3)Earnings on debt service reserve funds alterations,and the like are allowable to the copyright matter are unallowable:Cost of
or interest earned on borrowed funds extent that they:keep property(including preparing disclosures,reports,and other
pending payment of the construction or Federal property,unless otherwise provided documents and of searching the art to the
acquisition costs are used to offset the for)in an efficient operating condition,do extent necessary to make disclosures not
current period's cost or the capitalized not add to the permanent value of property required by the award;costs in connection
interest,as appropriate.Earnings subject to or appreciably prolong its intended life,and with filing and prosecuting any foreign
being reported to the Federal Internal are not otherwise included in rental or other patent application;or any United States
Revenue Service under arbitrage charges for space.Costs which add to the patent application,where the Federal award
requirements are excludable. permanent value of property or appreciably does not require conveying title or a royalty-
(4)For debt arrangements over$1 million, prolong its intended life shall be treated as free license to the Federal Government(but
unless the governmental unit makes an initial capital expenditures(see sections 11 and 15 see section 38,Royalties and other costs for
equity contribution to the asset purchase of of this appendix). use of patents and copyrights,of this
25 percent or more,the governmental unit 26.Materials and supplies costs. appendix).
51920 Federal Register/Vol. 70, No. 168/Wednesday, August 31, 2005/Rules and Regulations
30.Plant and homeland security costs. allowable.Proposal costs should normally be limited to those between divisions of a
Necessary and reasonable expenses incurred treated as indirect costs and should be governmental unit;governmental units under
for routine and homeland security to protect allocated to all activities of the governmental common control through common officers,
facilities,personnel,and work products are unit utilizing the cost allocation plan and directors,or members;and a governmental
allowable.Such costs include,but are not indirect cost rate proposal.However, unit and a director,trustee,officer,or key
limited to,wages and uniforms of personnel proposal costs may be charged directly to employee of the governmental unit or his
engaged in security activities;equipment; Federal awards with the prior approval of the immediate family,either directly or through
barriers;contractual security services; Federal awarding agency. corporations,trusts,or similar arrangements
consultants;etc.Capital expenditures for 34.Publication and printing costs. in which they hold a controlling interest.For
homeland and plant security purposes are a.Publication costs include the costs of example,a governmental unit may establish
subject to section 15,Equipment and other printing(including the processes of a separate corporation for the sole purpose of
capital expenditures,of this appendix. composition,plate-making,press work, owning property and leasing it back to the
31.Pre-award costs.Pre-award costs are binding,and the end products produced by governmental unit.
those incurred prior to the effective date of such processes),distribution,promotion, d.Rental costs under leases which are
the award directly pursuant to the mailing,and general handling.Publication required to be treated as capital leases under
negotiation and in anticipation of the award costs also include page charges in GAAP are allowable only up to the amount
where such costs are necessary to comply professional publications. (as explained in subsection 37.b of this
with the proposed delivery schedule or b.If these costs are not identifiable with a appendix)that would be allowed had the
period of performance.Such costs are particular cost objective,they should be governmental unit purchased the property on
allowable only to the extent that they would allocated as indirect costs to all benefiting the date the lease agreement was executed.
have been allowable if incurred after the date activities of the governmental unit. The provisions of Financial Accounting
of the award and only with the written c.Page charges for professional journal Standards Board Statement 13,Accounting
approval of the awarding agency. publications are allowable as a necessary part for Leases,shall be used to determine
32.Professional service costs. of research costs where: whether a lease is a capital lease.Interest
a.Costs of professional and consultant (1)The research papers report work costs related to capital leases are allowable to
services rendered by persons who are supported by the Federal Government;and the extent they meet the criteria in section 23
members of a particular profession or possess (2)The rharges are levied impartially on of this appendix.Unallowable costs include
a special skill,and who are not officers or research papers published by the journal, amounts paid for profit,management fees,
allemployees of the governmental unit,are whether or not by federally-sponsored and taxes that would not have been incurred
allowable,subject to subparagraphs b and c had the governmental unit purchased the
authors. facili
when reasonable in relation to the services 35.Rearrangement and alteration costs. �''
rendered and when.not contingent upon 38.Royalties and other costs for the use of
Costs incurred for ordinary and normal patents.
recovery of the costs from the Federal rearrangement and alteration of facilities are
Government.In addition,legal and related a.Royalties on a patent or copyright or
services are limited under section 10 of this allowable.Special arrangements and amortization of the cost of acquiring by
alterations costs incurred specifically for a patent,or rights
appendix. Federal award are allowable with the prior Purchase a copyright,
b.In determining the allowability of costs thereto,necessary for the proper performance
in a particular case,no single factor or any ap36.Reconversion costs.Costs iroval of the Federal ac�iency rred in of the award are allowable unless:
special combination of factors is necessarily the restoration or rehabilitation of the (1)The Federal Government has a license
determinative.However,the followingor the right to free use of the patent or
governmental unit's facilities to t
factors are relevant: co PYTig
(1)The nature and scope of the service approximately the same condition existing (2)The patent or copyright has been
immediately prior to commencement of adjudicated to be invalid,or has been
rendered in relation to the service required. l
Federal awards,less costs related to normal administrativelydetermined to be invalid.
(2)The necessity of contracting for the
service,considering the governmental unit's wear end tear,are allowable. (3)The patent or copyright is considered
capability in the particular area. 37.Rental casts of buildings and to be unenforceable.
equipment. (4)Thepatent or copyright is expired.
(3)The past pattern of such costs, PYngh xP
particularly in the years prior to Federal a.Subject to the limitations described in b.Special care should be exercised in
awards. subsections b.through d.of this section, determining reasonableness where the
(4)The impact of Federal awards on the rental costs are allowable to the extent that royalties may have been arrived at as a result
governmental unit's business(i.e.,what new the rates are reasonable in light of such of less-than-arms-length bargaining,e.g.:
problems have arisen). factors as:rental costs of comparable (1)Royalties paid to persons,including
(5)Whether the proportion of Federal work Property,if any;market conditions in the corporations,affiliated with the
to the governmental unit's total business is area;alternatives available;and the type,life governmental unit.
such as to influence the governmental unit in expectancy,condition,and value of the (2)Royalties paid to unaffiliated parties,
favor of incurring the cost,particularly where property leased.Rental arrangements should including corporations,under an agreement
the services rendered are not of a continuing be reviewed periodically to determine if entered into in contemplation that a Federal
nature and have little relationship to work circumstances have changed and other award would be made.
under Federal grants and contracts. options are available. (3)Royalties paid under an agreement
(6)Whether the service can be performed b.Rental costs under"sale and lease back" entered into after an award is made to a
more economically by direct employment arrangements are allowable only up to the governmental unit.
rather than contracting. amount that would be allowed had the c.In any case involving a patent or
(7)The qualifications of the individual or governmental unit continued to own the copyright formerly owned by the
concern rendering the service and the property.This amount would include governmental unit,the amount of royalty
customary fees charged,especially on non- expenses such as depreciation or use allowed should not exceed the cost which
Federal awards. allowance,maintenance,taxes,and would have been allowed had the
(8)Adequacy of the contractual agreement insurance. governmental unit retained title thereto.
for the service(e.g.,description of the c.Rental costs under"less-than-arm's- 39.Selling and marketing.Costs of selling
service,estimate of time required,rate of length"leases are allowable only up to the and marketing any products or services of the
compensation,and termination provisions). amount(as explained in section 37.b of this governmental unit are unallowable(unless
c.In addition to the factors in appendix)that would be allowed had title to allowed under section 1.of this appendix as
subparagraph b,retainer fees to be allowable the property vested in the governmental unit. allowable public relations costs or under
must be supported by available or rendered For this purpose,a less-than-arm's-length section 33.of this appendix as allowable
evidence of bona fide services available or lease is one under which one party to the proposal costs.
rendered. lease agreement is able to control or 40.Taxes.
33.Proposal costs.Costs of preparing substantially influence the actions of the a.Taxes that a governmental unit is legally.
proposals for potential Federal awards are other.Such leases include,but are not required to pay are allowable,except for self-
Federal Register/Vol. 70, No. 168/Wednesday, August 31, 2005/Rules and Regulations 51921
assessed taxes that disproportionately affect the terminated portion of the Federal award trip,and results in charges consistent with
Federal programs or changes in tax policies bears to the entire terminated Federal award those normally allowed in like circumstances
that disproportionately affect Federal and other Federal awards for which the in the governmental unit's non-federally-
programs.This provision is applicable to special tooling,machinery,or equipment was sponsored activities.Notwithstanding the
taxes paid during the governmental unit's acquired. provisions of section 19 of this appendix,
first fiscal year that begins on or after January d.Rental costs under unexpired leases are General government expenses,travel costs of
1,1998,and applies thereafter. generally allowable where clearly shown to officials covered by that section are allowable
b.Gasoline taxes,motor vehicle fees,and have been reasonably necessary for the with the prior approval of an awarding
other taxes that are in effect user fees for performance of the terminated Federal award agency when they are specifically related to
benefits provided to the Federal Government less the residual value of such leases,if: Federal awards.
are allowable. (1)The amount of such rental claimed does b.Lodging and subsistence.Costs incurred
c.This provision does not restrict the not exceed the reasonable use value of the by employees and officers for travel,
authority of Federal agencies to identify taxes property leased for the period of the Federal including costs of lodging,other subsistence,
where Federal participation is inappropriate. award and such further period as may be and incidental expenses,shall be considered
Where the identification of the amount of reasonable,and reasonable and allowable only to the extent
unallowable taxes would require an (2)The governmental unit makes all such costs do not exceed charges normally
inordinate amount of effort,the cognizant reasonable efforts to terminate,assign,settle, allowed by the governmental unit in its
agency may accept a reasonable or otherwise reduce the cost of such lease. regular operations as the result of the
approximation thereof. There also may be included the cost of governmental unit's written travel policy.In
41.Termination costs applicable to alterations of such leased property,provided the absence of an acceptable,written
sponsored agreements.Termination of such alterations were necessary for the governmental unit policy regarding travel
awards generally gives rise to the incurrence performance of the Federal award,and of costs,the rates end amounts established
of costs,or the need for special treatment of reasonable restoration required by the under subchapter I of Chapter 57,Title 5,
costs,which would not have arisen had the provisions of the lease. United States Code("Travel and Subsistence
Federal award not been terminated.Cost e.Settlement expenses including the Expenses;Mileage Allowances"),or by the
principles covering these items are set forth following are generally allowable: Administrator of General Services,or by the
below.They are to be used in conjunction (1)Accounting,legal,clerical,and similar President(or his or her designee)pursuant to
with the other provisions of this appendix in costs reasonably necessary for: any provisions of such subchapter shall
termination situations. (a)The preparation and presentation to the apply to travel under Federal awards(48 CFR
a.The cost of items reasonably usable on awarding agency of settlement claims and 31.205-46(a)).
the governmental unit's other work shall not supporting data with respect to the c.Commercial air travel.
be allowable unless the governmental unit terminated portion of the Federal award, (1)Airfare costs in excess of the customary
submits evidence that it would not retain unless the termination is for default(see standard commercial airfare(coach or
such items at cost without sustaining a loss. Subpart .44 of the Grants Management equivalent),Federal Government contract
In deciding whether such items are Common Rule(see§215.5)implementing airfare(where authorized and available),or
reasonably usable on other work of the OMB Circular A-102);and the lowest commercial discount airfare are
governmental unit,the awarding agency (b)The termination and settlement of unallowable except when such
should consider the governmental unit's subawards. accommodations would:
plans and orders for current and scheduled (2)Reasonable costs for the storage, (a)Require circuitous routing;
activity.Contemporaneous purchases of transportation,protection,and disposition of (b)Require travel during unreasonable
common items by the governmental unit property provided by the Federal hours;
shall be regarded as evidence that such items Government or acquired or produced for the (c)Excessively prolong travel;
are reasonably usable on the governmental Federal award,except when grantees or (d)Result in additional costs that would
unit's other work.Any acceptance of contractors are reimbursed for disposals at a offset the transportation savings;or
common items as allocable to the terminated predetermined amount in accordance with (e)Offer accommodations not reasonably
portion of the Federal award shall be limited Subparts_.31 and_.32 of the Grants adequate for the traveler's medical needs.
to the extent that the quantities of such items Management Common Rule(see§215.5) The governmental unit must justify and
on hand,in transit,and on order are in implementing OMB Circular A-102. document these conditions on a case-by-case
excess of the reasonable quantitative f.Claims under subawards,including the basis in order for the use of first-class airfare
requirements of other work. allocable portion of claims which are to be allowable in such cases.
b.If in a particular case,despite all common to the Federal award,and to other (2)Unless a pattern of avoidance is
reasonable efforts by the governmental unit, work of the governmental unit are generally detected,the Federal Government will
certain costs cannot be discontinued allowable.An appropriate share of the generally not question a governmental unit's
immediately after the effective date of governmental unit's indirect expense may be determinations that customary standard
termination,such costs are generally allocated to the amount of settlements with airfare or other discount airfare is unavailable
allowable within the limitations set forth in subcontractors and/or subgrantees,provided for specific trips if the governmental unit can
this and other appendices of 2 CFR part 225, that the amount allocated is otherwise demonstrate either of the following:
except that any such costs continuing after consistent with the basic guidelines (aa)That such airfare was not available in
termination due to the negligent or willful contained in Appendix A to this part.The the specific case;or
failure of the governmental unit to indirect expense so allocated shall exclude (b)That it is the governmental unit's
discontinue such costs shall be unallowable. the same and similar costs claimed directly overall practice to make routine use of such
c.Loss of useful value of special tooling, or indirectly as settlement expenses. airfare.
machinery,and equipment is generally 42.Training costs.The cost of training d.Air travel by other than commercial
allowable if: provided for employee development is carrier.Costs of travel by governmental unit-
(1)Such special tooling,special allowable. owned,-leased,or-chartered aircraft include
machinery,or equipment is not reasonably 43.Travel costs. the cost of lease,charter,operation
capable of use in the other work of the a.General.Travel costs are the expenses (including personnel costs),maintenance,
governmental unit, for transportation,lodging,subsistence,and depreciation,insurance,and other related
(2)The interest of the Federal Government related items incurred by employees who are costs.The portion of such costs that exceeds
is protected by transfer of title or by other in travel status on official business of the the cost of allowable commercial air travel,
means deemed appropriate by the awarding governmental unit.Such costs may be as provided for in subsection 43.c.of this
agency,and charged on an actual cost basis,on a per appendix,is unallowable.
(3)The loss of useful value for any one diem or mileage basis in lieu of actual costs e.Foreign travel.Direct charges for foreign
terminated Federal award is limited to that incurred,or on a combination of the two, travel costs are allowable only when the
portion of the acquisition cost which bears provided the method used is applied to an travel has received prior approval of the
the same ratio to the total acquisition cost as entire trip and not to selected days of the awarding agency.Each separate foreign trip
51922 Federal Register/Vol. 70, No. 168/Wednesday, August 31, 2005/Rules and Regulations
must receive such approval.For purposes of 1."Billed central services"means central for those central services which have little or
this provision,"foreign travel"includes any services that are billed to benefitted agencies no impact on Federal awards.Conversely,if
travel outside Canada,Mexico,the United and/or programs on an individual fee-for- a review of a plan indicates that certain
States,and any United States territories and service or similar basis.Typical examples of additional information is needed,and will
possessions.However,the term"foreign billed central services include computer likely be needed in future years,it may be
travel"for a governmental unit located in a services,transportation services,insurance, routinely requested in future plan
foreign country means travel outside that and fringe benefits. submissions.Items marked with an asterisk
country. 2."Allocated central services"means (*)should be submitted only once;
Appendix C to Part 225—State/Local- central services that benefit operating subsequent plans should merely indicate any
ppagencies but are not billed to the agencies on changes since the last plan.
Wide Central Service Cost Allocation a fee-for-service or similar basis.These costs 1.General.All proposed plans must be
Plans are allocated to benefitted agencies on some accompanied by the following:An
Table of Contents reasonable basis.Examples of such services organization chart sufficiently detailed to
might include general accounting,personnel show operations including the central service
A.General administration,purchasing,etc. activities of the State/local government
B.Definitions 3."Agency or operating agency"means an whether or not they are shown as benefiting
1.Billed central services organizational unit or sub-division within a from central service functions;a copy of the
2.Allocated central services governmental unit that is responsible for the Comprehensive Annual Financial Report(or
3.Agency or operating agency performance or administration of awards or a copy of the Executive Budget if budgeted
C.Scope of the Central Service Cost activities of the governmental unit. costs are being proposed)to support the
Allocation Plans C.Scope of the Central Service Cost allowable costs of each central service
D.Submission Requirements Allocation Plans.The central service cost activity included in the plan;and,a
E.Documentation Requirements for allocation plan will include all central certification(see subsection 4.)that the plan
Submitted Plans service costs that will be claimed(either as was prepared in accordance with this and
1.General a billed or an allocated cost)under Federal other appendices to this part,contains only
2.Allocated central services awards and will be documented as described allowable costs,and was prepared in a
3.Billed services in section E.Costs of central services omitted manner that treated similar costs consistently
a.General from the plan will not be reimbursed. among the various Federal awards and
b.Internal service funds D.Submission Requirements. between Federal and non-Federal awards/
c.Self-insurance funds 1.Each State will submit a plan to the activities.
d.Fringe benefits Department of Health and Human Services 2.Allocated central services.For each
4.Required certification for each year in which it claims central allocated central service,the plan must also
F.Negotiation and Approval of Central service costs under Federal awards.The plan include the following:A brief description of
Service Plans should include a projection of the next year's the service*,an identification of the unit
G.Other Policies allocated central service cost(based either on rendering the service and the operating
1.Billed central service activities actual costs for the most recently completed agencies receiving the service,the items of
2.Working capital reserves year or the budget projection for the coming expense included in the cost of the service,
3.Carry-forward adjustments of allocated year),and a reconciliation of actual allocated the method used to distribute the cost of the
central service costs central service costs to the estimated costs service to benefitted agencies,and a
4.Adjustments of billed central services used for either the most recently completed summary schedule showing the allocation of
5.Records retention year or the year immediately preceding the each service to the specific benefitted
6.Appeals most recently completed year. agencies.If any self-insurance funds or fringe
7.0MB assistance State/Local-Wide 2.Each local government that has been benefits costs are treated as allocated(rather
Central Service Cost Allocation Plans designated as a"major local government"by than billed)central services,documentation
A.General. the Office of Management and Budget(0MB) discussed in subsections 3.b.and c.shall also
1.Most governmental units provide certain is also required to submit a plan to its be included.
services,such as motor pools,computer cognizant agency annually.OMB periodically 3.Billed services.
centers,purchasing,accounting,etc.,to lists major local governments in the Federal a.General.The information described
operating agencies on a centralized basis. Register. below shall be provided for all billed central
Since federally-supported awards are 3.All other local governments claiming services,including internal service funds,
performed within the individual operating central service costs must develop a plan in self-insurance funds,and fringe benefit
agencies,there needs to be a process whereby accordance with the requirements described funds.
these central service costs can be identified in this appendix and maintain the plan and b.Internal service funds.
and assigned to benefitted activities on a related supporting documentation for audit. (1)For each internal service fund or similar
reasonable and consistent basis.The central These local governments are not required to activity with an operating budget of$5
service cost allocation plan provides that submit their plans for Federal approval million or more,the plan shall include:A
process.All costs and other data used to unless they are specifically requested to do brief description of each service;a balance
distribute the costs included in the plan so by the cognizant agency.Where a local sheet for each fund based on individual
should be supported by formal accounting government only receives funds as a sub- accounts contained in the governmental
and other records that will support the recipient,the primary recipient will be unit's accounting system;a revenue/expenses
propriety of the costs assigned to Federal responsible for negotiating indirect cost rates statement,with revenues broken out by
awards. and/or monitoring the sub-recipient's plan. source,e.g.,regular billings,interest earned,
2.Guidelines and illustrations of central 4.All central service cost allocation plans etc.;a listing of all non-operating transfers(as
service cost allocation plans are provided in will be prepared and,when required, defined by Generally Accepted Accounting
a brochure published by the Department of submitted within six months prior to the Principles(GAAP))into and out of the fund;
Health and Human Services entitled"A beginning of each of the governmental unit's a description of the procedures
Guide for State and Local Government fiscal years in which it proposes to claim (methodology)used to charge the costs of
Agencies:Cost Principles and Procedures for central service costs.Extensions may be each service to users,including how billing
Establishing Cost Allocation Plans and granted by the cognizant agency on a case- rates are determined;a schedule of current
Indirect Cost Rates for Grants and Contracts by-case basis. rates;and,a schedule comparing total
with the Federal Government."A copy of E.Documentation Requirements for revenues(including imputed revenues)
this brochure maybe obtained from the Submitted Plans.The documentation generated by the service to the allowable
Superintendent of Documents,U.S. requirements described in this section may costs of the service,as determined under this
Government Printing Office,Washington,DC be modified,expanded,or reduced by the and other appendices of this part,with an
20401. cognizant agency on a case-by-case basis.For explanation of how variances will be
B.Definitions. example,the requirements may be reduced handled.
Federal Register/Vol. 70, No. 168/Wednesday, August 31, 2005/Rules and Regulations 51923
(2)Revenues shall consist of all revenues accordance with applicable requirements. recovery of costs,are allowable.A working
generated by the service,including unbilled Further,the same costs that have been treated capital reserve as part of retained earnings of
and uncollected revenues.If some users were as indirect costs have not been claimed as up to 60 days cash expenses for normal
not billed for the services(or were not billed direct costs.Similar types of costs have been operating purposes is considered reasonable.
at the full rate for that class of users),a accounted for consistently. A working capital reserve exceeding 60 days
schedule showing the full imputed revenues I declare that the foregoing is true and may be approved by the cognizant Federal
associated with these users shall be provided. correct. agency in exceptional cases.
Expenses shall be broken out by object cost Governmental Unit: 3.Carry-forward adjustments of allocated
categories(e.g.,salaries,supplies,etc.). Signature: central service costs.Allocated central
c.Self-insurance funds.For each self- Name of Official: service costs are usually negotiated and
fund balance fund,the a statementa shallinclude:of revenue The approved for a future fiscal year on a"fixed
fund sheet;a Title: PP
and expenses including a summary of Date of Execution: with carry-forward"basis.Under this
billings and claims paid by agency;a listing F.Negotiation and Approval of Central procedure,the fixed amounts for the future
of all non-operating transfers into and out of Service Plans. year covered by agreement are not subject to
the fund;the type(s)of risk(s)covered by the 1.All proposed central service cost adjustment for that year.However,when the
fund(e.g.,automobile liability,workers' allocation plans that are required to be actual costs of the year involved become
compensation,etc.);an explanation of how submitted will be reviewed,negotiated,and known,the differences between the fixed
the level of fund contributions are approved by the Federal cognizant agency on amounts previously approved and the actual
determined,including a copy of the current a timely basis.The cognizant agency will costs will be carried forward and used as an
actuarial report(with the actuarial review the proposal within six months of adjustment to the fixed amounts established
assumptions used)if the contributions are receipt of the proposal and either negotiate/ for a later year.This"carry-forward"
determined on an actuarial basis;and,a approve the proposal or advise the procedure applies to all central services
description of the procedures used to charge governmental unit of the additional whose costs were fixed in the approved plan.
or allocate fund contributions to benefitted documentation needed to support/evaluate However,a carry-forward adjustment is not
activities.Reserve levels in excess of claims the proposed plan or the changes required to permitted,for a central service activity that
submitted and adjudicated but not paid, make the proposal acceptable.Once an was not included in the approved plan,or for
submitted but not adjudicated,and incurred agreement with the governmental unit has unallowable costs that must be reimbursed
but not submitted must be identified and been reached,the agreement will be accepted immediately.
explained. and used by all Federal agencies,unless 4.Adjustments of billed central services.
d.Fringe benefits.For fringe benefit costs, prohibited or limited by statute.Where a Billing rates used to charge Federal awards
the plan shall include:A listing of fringe Federal funding agency has reason to believe
benefits provided to covered employees,and that special operating factors affecting its shall be based on the estimated costs of
the overall annual cost of each type of awards necessitate special consideration,the Providing the services,including an estimate
benefit;current fringe benefit policies*;and funding agency will,prior to the time the of the allocable central service costs.A
procedures used to charge or allocate the plans are negotiated,notify the cognizant comparison of the revenue generated by each
costs of the benefits to benefitted activities. agency. billed service(including total revenues
In addition,for pension and post-retirement 2.The results of each negotiation shall be whether or not billed or collected)to the
health insurance plans,the following formalized in a written agreement between actual allowable costs of the service will be
information shall be provided:the the cognizant agency and the governmental made at least annually,and an adjustment
governmental unit's funding policies,e.g., unit.This agreement will be subject to re- will be made for the difference between the
legislative bills,trust agreements,or State- opening if the agreement is subsequently revenue and the allowable costs.These
mandated contribution rules,if different from found to violate a statute or the information adjustments will be made through one of the
actuarially determined rates;the pension upon which the plan was negotiated is later following adjustment methods:A cash refund
plan's costs accrued for the year;the amount found to be materially incomplete or to the Federal Government for the Federal
funded,and date(s)of funding;a copy of the inaccurate.The results of the negotiationshare of the adjustment,credits to the
current actuarial report(including the shall be made available to all Federal amounts charged to the individual programs,
actuarial assumptions);the plan trustee's agenciess for their use. plansadjustments to future billingrates,or
report;and,a schedule from the activity 3.Negotiated cost allocation based j�
showing the value of the interest cost on a proposal later found to have included adjustments to allocated central service costs.
associated with late funding. costs that:Are unallowable as specified by Adjustments to allocated central services will
4.Required certification.Each central law or regulation,as identified in Appendix not be permitted where the total amount of
service cost allocation plan will be B of this part,or by the terms and conditions the adjustment for a particular service
accompanied by a certification in the of Federal awards,or are unallowable (Federal share and non-Federal)share
following form: because they are clearly not allocable to exceeds$500,000.
Federal awards,shall be adjusted,or a refund 5.Records retention.All central service
Certificate of Cost Allocation Plan shall be made at the option of the Federal cost allocation plans and related
This is to certify that I have reviewed the cognizant agency.These adjustments or documentation used as a basis for claiming
cost allocation plan submitted herewith and refunds are designed to correct the plans and costs under Federal awards must be retained
to the best of my knowledge and belief: do not constitute a reopening of the for audit in accordance with the records
(1)All costs included in this proposal negotiation. retention requirements contained in the
[identify date]to establish cost allocations or G.Other Policies. Common Rule.
billings for[identify period covered by plan] 1.Billed central service activities.Each 6.Appeals.If a dispute arises in the
are allowable in accordance with the billed central service activity must separately negotiation of a plan between the cognizant
requirements of 2 CFR Part 225,Cost account for all revenues(including imputed agency and the governmental unit,the
Principles for State,Local,and Indian Tribal revenues)generated by the service,expenses dispute shall be resolved in accordance with
Governments(OMB Circular A-87),and the incurred to furnish the service,and profit/ the appeals procedures of the cognizant
Federal award(s)to which they apply. loss.
Unallowable costs have been adjusted for in 2.Working capital reserves.Internal agency.
allocating costs as indicated in the cost service funds are dependent upon a 7.OMB assistance.To the extent that
allocation plan. reasonable level of working capital reserve to problems are encountered among the Federal
(2)All costs included in this proposal are operate from one billing cycle to the next. agencies and/or governmental units in
properly allocable to Federal awards on the Charges by an internal service activity to connection with the negotiation and approval
basis of a beneficial or causal relationship provide for the establishment and process,OMB will lend assistance,as
between the expenses incurred and the maintenance of a reasonable level of working required,to resolve such problems in a
awards to which they are allocated in capital reserve,in addition to the full timely manner.
51924 Federal Register/Vol. 70, No. 168/Wednesday, August 31, 2005/Rules and Regulations
Appendix D to Part 225-Public 2.Under the coordination process outlined C.Allocation of Indirect Costs and
Assistance Cost Allocation Plans in subsection E,affected Federal agencies Determination of Indirect Cost Rates
will review all new plans and plan 1.General
Table of Contents amendments and provide comments,as 2.Simplified method
A.General appropriate,to HHS.The effective date of the 3.Multiple allocation base method
B.Definitions plan or plan amendment will be the first day 4.Special indirect cost rates
1.State public assistance agency of the quarter following the submission of the D.Submission and Documentation of
2.State public assistance agency costs plan or amendment,unless another date is Proposals
C.Policy specifically approved by HHS.HHS,as the 1.Submission of indirect cost rate
D.Submission,Documentation,and cognizant agency acting on behalf of all proposals
Approval of Public Assistance Cost affected Federal agencies,will,as necessary, 2.Documentation of proposals
Allocation Plans conduct negotiations with the State public 3.Required certification
E.Review of Implementation of Approved assistance agency and will inform the State E.Negotiation and Approval of Rates
Plans agency of the action taken on the plan or plan F.Other Policies
F.Unallowable Costs amendment. 1.Fringe benefit rates
A.General.Federally-financed programs E.Review of Implementation of Approved 2.Billed services provided by the grantee
administered by State public assistance ply, agency
agencies are funded predominately by the 1.Since public assistance cost allocation 3.Indirect cost allocations not using rates
Department of Health and Human Services plans are of a narrative nature,the review 4.Appeals
(HHS).In support of its stewardship during the plan approval process consists of 5.Collections of unallowable costs and
requirements,HHS has published evaluating the appropriateness of there erroneous payments
documentation,g esfor
sube mission,lop negotiation,and proposement, d groupings of costs(cost centers) A.General.assistance
and the related allocation bases.As such,the
approval of public assistance cost allocation Federal Government needs some assurance 1.Indirect costs are those that have been
plans in Subpart E of 45 CFR part 95.All that the cost allocation plan has been incurred for common or joint purposes.
administrative costs(direct and indirect)are These costs benefit more than one cost
implemented as approved.This is
normally charged to Federal awards by ublic assistance costaccomplished by reviews by the funding objective and cannot be readily identified
allocation plan.Tthehis appendix extends these encies,single audits,or audits conducted effort disproportionate�rfinal
to the objective esults without
requirements to all Federal agencies whose by the cognizant audit agency. achieved.After direct costs have been
ro ams are administered a State public 2.Where inappropriate charges affecting determined
assistance agency.Major federally-finnced more than one funding agency are identified, awards and other assigned
d s directlyas appropriate,toFederal
ro amstypicallyadministered byState the cognizant HHS cost negotiation office
p : will be advised and will take the lead in indirect costs are those remaining to be
Temporary assistance agenciesncetinclude: allocated to benefitted cost objectives.A cost
Assistance to Needy Families resolving the issue(s)as provided for in be allocated to a award as
Federal
(TANF),Medicaid,Food Stamps,Child Subpart E of 45 CFR part 95. may not _
Support Enforcement,Adoption Assistance 3.If a dispute arises in the negotiation of ane ame purpose,in indirect cost if anlike er other cost i rc edhor
for
and Foster Care,and Social Services Block a plan or from a disallowance involving two
Grant. or more funding agencies,the dispute shall been assigned to a Federal award as a direct
B.De dons. be resolved in accordance with the appeals Cost
1."State public assistance agency"means procedures set out in 45 CFR part 75. 2.Indirect costs include the indirect costs
a State agency administering or supervising Disputes involving only one funding agency ° each department or agency of
the administration of one or more public will be resolved in accordance with the the governmental unit carrying out Federal
assistance programs operated by the State as funding agency's appeal process. awards and the costs of central governmental
identified in Subpart E of 45 CFR part 95.For 4.To the extent that problems are services distributed through the central
the purpose of this appendix,these programs encountered among the Federal agencies service cost allocation plan(as described in
include all programs administered by the and/or governmental units in connection Appendix C to this part)and not otherwise
State public assistance agency. with the negotiation and approval process, treated as direct costs.
2."State public assistance agency costs" the Office of Management and Budget will 3.Indirect costs are normally charged to
means all costs incurred by,or allocable to, lend assistance,as required,to resolve such Federal awards by the use of an indirect cost
the State public assistance agency,except problems in a timely manner. rate.A separate indirect cost rate(s)is usually
expenditures for financial assistance,medical F.Unallowable Costs.Claims developed necessary for each department or agency of
vendor payments,food stamps,and under approved cost allocation plans will be the governmental unit claiming indirect costs
payments for services and goods provided based on allowable costs as identified in 2 under Federal awards.Guidelines and
directly to program recipients. CFR part 225.Where unallowable costs have illustrations of indirect cost proposals are
C.Policy.State public assistance agencies been claimed and reimbursed,they will be provided in a brochure published by the
will develop,document and implement,and refunded to the program that reimbursed the Department of Health and Human Services
the Federal Government will review, unallowable cost liming one of the following entitled"A Guide for State and Local
negotiate,and approve,public assistance cost methods:a cash refund,offset to a Government Agencies:Cost Principles and
allocation plans in accordance with Subpart subsequent claim,or credits to the amounts Procedures for Establishing Cost Allocation
E of 45 CFR part 95.The plan will include charged to individual awards. Plans and Indirect Cost Rates for Grants and
all programs administered by the State public Contracts with the Federal Government."A
assistance agency.Where a letter of approval Appendix E to Part 225-State and copy of this brochure may be obtained from
or disapproval is transmitted to a State public Local Indirect Cost Rate Proposals the Superintendent of Documents,U.S.
assistance agency in accordance with Subpart Table of Contents Government Printing Office,Washington,DC
E,the letter will apply to all Federal agencies 20401.
and programs.The remaining sections of this A.General 4.Because of the diverse characteristics
appendix(except for the requirement for B.Definitions and accounting practices of governmental
certification)summarize the provisions of 1.Indirect cost rate proposal units,the types of costs which may be
Subpart E of 45 CFR part 95. 2.Indirect cost rate classified as indirect costs cannot be
D.Submission,Documentation,and 3.Indirect cost pool specified in all situations.However,typical
Approval of Public Assistance Cost 4.Base examples of indirect costs may include
Allocation Plans. 5.Predetermined rate certain State/local-wide central service costs,
1.State public assistance agencies are 6.Fixed rate general administration of the grantee
required to promptly submit amendments to 7.Provisional rate department or agency,accounting and
the cost allocation plan to HHS for review 8.Final rate personnel services performed within the
and approval. 9.Base period grantee department or agency,depreciation
Federal Register/Vol. 70, No. 168/Wednesday, August 31, 2005/Rules and Regulations 51925
or use allowances on buildings and costs are incurred and accumulated for cost groupings.Each grouping shall then be
equipment,the costs of operating and allocation to activities performed in that allocated individually to benefitted functions
maintaining facilities,etc. period.The base period normally should by means of a base which best measures the
5.This appendix does not apply to State coincide with the governmental unit's fiscal relative benefits.
public assistance agencies.These agencies year,but in any event,shall be so selected b.The cost groupings should be
should refer instead to Appendix D to this as to avoid inequities in the allocation of established so as to permit the allocation of
part. costs. each grouping on the basis of benefits
B.Definitions. C.Allocation of Indirect Costs and provided to the major functions.Each
1."Indirect cost rate proposal"means the Determination of Indirect Cost Rates. grouping should constitute a pool of
documentation prepared by a governmental 1.General. expenses that are of like character in terms
unit or subdivision thereof to substantiate its a.Where a governmental unit's department of the functions they benefit and in terms of
request for the establishment of an indirect or agency has only one major function,or the allocation base which best measures the
cost rate. where all its major functions benefit from the relative benefits provided to each function.
2."Indirect cost rate"is a device for indirect costs to approximately the same The number of separate groupings should be
determining in a reasonable manner the degree,the allocation of indirect costs and held within practical limits,taking into
proportion of indirect costs each program the computation of an indirect cost rate may consideration the materiality of the amounts
should bear.It is the ratio(expressed as a be accomplished through simplified involved and the degree of precision needed.
percentage)of the indirect costs to a direct allocation procedures as described in c.Actual conditions must be taken into
cost base. subsection 2 of this appendix. account in selecting the base to be used in
3."Indirect cost pool"is the accumulated b.Where a governmental unit's department allocating the expenses in each grouping to
costs that jointly benefit two or more or agency has several major functions which benefitted functions.When an allocation can
programs or other cost objectives. benefit from its indirect costs in varying be made by assignment of a cost grouping
4."Base"means the accumulated direct degrees,the allocation of indirect costs may directly to the function benefitted,the
costs(normally either total direct salaries and require the accumulation of such costs into allocation shall be made in that manner.
wages or total direct costs exclusive of any separate cost groupings which then are When the expenses in a grouping are more
extraordinary or distorting expenditures) allocated individually to benefitted functions general in nature,the allocation should be
used to distribute indirect costs to individual by means of a base which best measures the made through the use of a selected base
Federal awards.The direct cost base selected relative degree of benefit.The indirect costs which produces results that are equitable to
should result in each award bearing a fair allocated to each function are then both the Federal Government and the
share of the indirect costs in reasonable distributed to individual awards and other governmental unit.In general,any cast
relation to the benefits received from the activities included in that function by means element or related factor associated with the
costs. of an indirect cost rate(s). governmental unit's activities is potentially
5."Predetermined rate"means an indirect c.Specific methods for allocating indirect adaptable for use as an allocation base
cost rate,applicable to a specified current or costs and computing indirect cost rates along provided that:it can readily be expressed in
future period,usually the governmental with the conditions under which each terms of dollars or other quantitative
unit's fiscal year.This rate is based on an method should be used are described in measures(total direct costs,direct salaries
estimate of the costs to be incurred during subsections 2,3 and 4 of this appendix. and wages,staff hours applied,square feet
the period.Except under very unusual 2.Simplified method. used,hours of usage,number of documents
circumstances,a predetermined rate is not a.Where a grantee agency's major processed,population served,and the like),
subject to adjustment.(Because of legal functions benefit from its indirect costs to and it is common to the benefitted functions
constraints,predetermined rates are not approximately the same degree,the during the base period.
permitted for Federal contracts;they may, allocation of indirect costs may be d.Except where a special indirect cost
however,be used for grants or cooperative accomplished by classifying the grantee rate(s)is required in accordance with
agreements.)Predetermined rates may not be agency's total costs for the base period as subsection 4,the separate groupings of
used by governmental units that have not either direct or indirect,and dividing the indirect costs allocated to each major
submitted and negotiated the rate with the total allowable indirect costs(net of function shall be aggregated and treated as a
cognizant agency.In view of the potential applicable credits)by an equitable common pool for that function.The costs in
advantages offered by this procedure, distribution base.The result of this process the common pool shall then be distributed to
negotiation of predetermined rates for is an indirect cost rate which is used to individual Federal awards included in that
indirect costs for a period of two to four years distribute indirect costs to individual Federal function by use of a single indirect cost rate.
should be the norm in those situations where awards.The rate should be expressed as the e.The distribution base used in computing
the cost experience and other pertinent facts percentage which the total amount of the indirect cost rate for each function may
available are deemed sufficient to enable the allowable indirect costs bears to the base be total direct costs(excluding capital
parties involved to reach an informed selected.This method should also be used expenditures and other distorting items such
judgment as to the probable level of indirect where a governmental unit's department or as pass-through funds,major subcontracts,
costs during the ensiling accounting periods. agency has only one major function etc.),direct salaries and wages,or another
6."Fixed rate"means an indirect cost rate• encompassing a number of individual base which results in an equitable
which has the same characteristics as a projects or activities,and may be used where distribution.An indirect cost rate should be
predetermined rate,except that the difference the level of Federal awards to that developed for each separate indirect cost
between the estimated costs and the actual, department or agency is relatively small. pool developed.The rate in each case should
allowable costs of the period covered by the b.Both the direct costs and the indirect be stated as the percentage relationship
rate is carried forward as an adjustment to costs shall exclude capital expenditures and between the particular indirect cost pool and
the rate computation of a subsequent period. unallowable costs.However,unallowable the distribution base identified with that
7."Provisional rate"means a temporary costs must be included in the direct costs if pool.
indirect cost rate applicable to a specified they represent activities to which indirect 4.Special indirect cost rates.
period which is used for funding,interim costs are properly allocable. a.In some instances,a single indirect cost
reimbursement,and reporting indirect costs c.The distribution base may be total direct rate for all activities of a grantee department
on Federal awards pending the establishment costs(excluding capital expenditures and or agency or for each major function of the
of a"final"rate for that period: other distorting items,such as pass-through agency may not be appropriate.It may not
8."Final rate"means an indirect cost rate funds,major subcontracts,etc.),direct take into account those different factors
applicable to a specified past period which salaries and wages,or another base which which may substantially affect the indirect
is based on the actual allowable costs of the results in an equitable distribution. costs applicable to a particular program or
period.A final audited rate is not subject to 3.Multiple allocation base method. group of programs.The factors may include
adjustment. a.Where a grantee agency's indirect costs the physical location of the work,the level
9."Base period"for the allocation of benefit its major functions in varying degrees, of administrative support required,the
indirect costs is the period in which such such costs shall be accumulated into separate nature of the facilities or other resources
51926 Federal Register/Vol. 70, No. 168/Wednesday, August 31, 2005/Rules and Regulations
employed,the organizational arrangements service cost allocation plan for the same Government will be notified of any
used,or any combination thereof.When a period has not been approved by that time, accounting changes that would affect the
particular award is carried out in an the indirect cost proposal may be prepared predetermined rate.
environment which appears to generate a including an amount for central services that I declare that the foregoing is true and
significantly different level of indirect costs, is based on the latest federally-approved correct.
provisions should be made for a separate central service cost allocation plan.The Governmental Unit:
indirect cost pool applicable to that award. difference between these central service Signature:
The separate indirect cost pool should be amounts and the amounts ultimately Name of Official:
developed during the course of the regular approved will be compensated for by an
allocation process,and the separate indirect adjustment in a subsequent period. Title:
cost rate resulting therefrom should be used, 2.Documentation of proposals.The Date of Execution:
provided that:the rate differs significantly following shall be included with each E.Negotiation and Approval of Rates.
from the rate which would have been indirect cost proposal: 1.Indirect cost rates will be reviewed,
developed under subsections 2.and 3.of this a.The rates proposed,including subsidiary negotiated,and approved by the cognizant
appendix,and the award to which the rate work sheets and other relevant data,cross Federal agency on a timely basis.Once a rate
would apply is material in amount. referenced and reconciled to the financial has been agreed upon,it will be accepted and
b.Although 2 CFR part 225 adopts the data noted in subsection b of this appendix. used by all Federal agencies unless
concept of the full allocation of indirect Allocated central service costs will be prohibited or limited by statute.Where a
costs,there are some Federal statutes which supported by the summary table included in Federal funding agency has reason to believe
restrict the reimbursement of certain indirect the approved central service cost allocation that special operating factors affecting its
costs.Where such restrictions exist,it may be plan.This summary table is not required to awards necessitate special indirect cost rates,
necessary to develop a special rate for the be submitted with the indirect cost proposal the funding agency will,prior to the time the
affected award.Where a"restricted rate"is if the central service cost allocation plan for rates are negotiated,notify the cognizant
required,the procedure for developing a non- the same fiscal year has been approved by the Federal agency.
restricted rate will be used except for the cognizant agency and is available to the 2.The use of predetermined rates,if
additional step of the elimination from the funding agency. allowed,is encouraged where the cognizant
indirect cost pool those costs for which the b.A copy of the financial data(financial agency has reasonable assurance based on
law prohibits reimbursement. statements,comprehensive annual financial past experience and reliable projection of the
D.Submission and Documentation of report,executive budgets,accounting reports, grantee agency's costs,that the rate is not
Proposals. etc.)upon which the rate is based. likely to exceed a rate based on actual costs.
1.Submission of indirect cost rate Adjustments resulting from the use of Long-term agreements utilizing
proposals. unaudited data will be recognized,where predetermined rates extending over two or
a.All departments or agencies of the appropriate,by the Federal cognizant agency more years are encouraged,where
governmental unit desiring to claim indirect in a subsequent proposal. appropriate.
costs under Federal awards must prepare an c.The approximate amount of direct base 3.The results of each negotiation shall be
indirect cost rate proposal and related costs incurred under Federal awards.These formalized in a written agreement between
documentation to support those costs.The costs should be broken out between salaries the cognizant agency and the governmental
proposal and related documentation must be and wages and other direct costs. unit.This agreement will be subject to re-
retained for audit in accordance with the d.A chart showing the organizational opening if the agreement is subsequently
records retention requirements contained in structure of the agency during the period for found to violate a statute,or the information
the Common Rule. which the proposal applies,along with a upon which the plan was negotiated is later
b.A governmental unit for which a functional statement(s)noting the duties and/ found to be materially incomplete or
cognizant agency assignment has been or responsibilities of all units that comprise inaccurate.The agreed upon rates shall be
specifically designated must submit its the agency.(Once this is submitted,only made available to all Federal agencies for
indirect cost rate proposal to its cognizant revisions need be submitted with subsequent their use.
agency.The Office of Management and proposals.) 4.Refunds shall be made if proposals are
Budget(OMB)will periodically publish lists 3.Required certification.Each indirect cost later found to have included costs that are
of governmental units identifying the rate proposal shall be accompanied by a unallowable as specified by law or
appropriate Federal cognizant agencies.The certification in the following form: regulation,as identified in Appendix B to
cognizant agency for all governmental units this part,or by the terms and conditions of
or agencies not identified by OMB will be Certificate of Indirect Costs Federal awards,or are unallowable because
determined based on the Federal agency This is to certify that I have reviewed the they are clearly not allocable to Federal
providing the largest amount of Federal indirect cost rate proposal submitted awards.These adjustments or refunds will be
funds.In these cases,a governmental unit herewith and to the best of my knowledge made regardless of the type of rate negotiated
must develop an indirect cost proposal in and belief: (predetermined,final,fixed,or provisional).
accordance with the requirements of 2 CFR (1)All costs included in this proposal F.Other Policies.
225 and maintain the proposal and related [identify date]to establish billing or final 1.Fringe benefit rates.If overall fringe
supporting documentation for audit.These indirect costs rates for[identify period benefit rates are not approved for the
governmental units are not required to covered by rate]are allowable in accordance governmental unit as part of the central
submit their proposals unless they are with the requirements of the Federal award(s) service cost allocation plan,these rates will
specifically requested to do so by the to which they apply and 2 CFR part 225,Cost be reviewed,negotiated and approved for
cognizant agency.Where a local government Principles for State,Local,and Indian Tribal individual grantee agencies during the
only receives funds as a sub-recipient,the Governments(OMB Circular A-87). indirect cost negotiation process.In these
primary recipient will be responsible for Unallowable costs have been adjusted for in cases,a proposed fringe benefit rate
negotiating and/or monitoring the sub- allocating costs as indicated in the cost computation should accompany the indirect
recipient's plan. allocation plan. cost proposal.If fringe benefit rates are not
c.Each Indian tribal government desiring (2)All costs included in this proposal are used at the grantee agency level(i.e.,the
reimbursement of indirect costs must submit properly allocable to Federal awards on the agency specifically identifies fringe benefit
its indirect cost proposal to the Department basis of a beneficial or causal relationship costs to individual employees),the
of the Interior(its cognizant Federal agency). between the expenses incurred and the governmental unit should so advise the
d.Indirect cost proposals must be agreements to which they are allocated in cognizant agency.
developed(and,when required,submitted) accordance with applicable requirements. 2.Billed services provided by the grantee
within six months after the close of the Further,the same costs that have been treated agency.In some cases,governmental units
governmental unit's fiscal year,unless an as indirect costs have not been claimed as provide and bill for services similar to those
exception is approved by the cognizant direct costs.Similar types of costs have been covered by central service cost allocation
Federal agency.If the proposed central accounted for consistently and the Federal plans(e.g.,computer centers).Where this
Federal Register/Vol. 70, No. 168/Wednesday, August 31, 2005/Rules and Regulations 51927
occurs,the governmental unit should be agency efforts to implement the Federal 230.45 Relationship to previous issuance.
guided by the requirements in Appendix C to Financial Assistance Management 230.50 Information Contact.
this part relating to the development of Improvement Act of 1999(Pub.L.106- Appendix A to Part 230—General Principles
billing rates and documentation 107). Appendix B to Part 230—Selected Items of
requirements,and should advise the Cost
cognizant agency of any billed services. DATES:Part 230 is effective August 31,
Reviews of these types of services(including 2005.This document republishes the Appendix C to Part 230—Non-Profit
reviews of costing/billing methodology, existing OMB Circular A-122,which Organizations Not Subject to This Part
profits or losses,etc.)will be made on a case- already is in effect. Authority:31 U.S.G.503;31 U.S.C.1111;
by-case basis as warranted by the FOR FURTHER INFORMATION CONTACT:Gil 41 U.S.C.405;Reorganization Plan No.2 of
circumstances involved. Tran,Office of Federal Financial 1970;E.O.11541,35 FR 10737,3 CFR,1966-
3.Indirect cost allocations not using rates. Management,Office of Management and 1970,P.939
In certain situations,a governmental unit, g
because of the nature of its awards,may be Budget,telephone 202-395-3052 §230.5 Purpose.
required to develop a cost allocation plan (direct)or 202-395-3993(main office)
that distributes indirect(and,in some cases, and e-mail:Hai_hrl._Tmn@omb.eop.gov. This part establishes principles for
direct)costs to the specific funding sources. SUPPLEMENTARY INFORMATION:On May determining costs of grants,contracts
In these cases,a narrative cost allocation 10,2004[69 FR 25970],we revised the and other agreements with non-profit
methodology should be developed, three OMB circulars containing Federal organizations.
documented,maintained for audit,or
submitted,as appropriate,to the cognizant cost principles.The purpose of those
agency for review,negotiation,and approval. revisions was to simplify the cost §230.10 Scope.
4.Appeals.If a dispute arises in a principles by making the descriptions of (a)This part does not apply to
negotiation of an indirect cost rate(or other similar cost items consistent across the colleges and universities which are
rate)between the cognizant agency and the circulars where possible,thereby covered by 2 CFR part 220 Cost
governmental unit,the dispute shall be reducing the possibility of Principles for Educational Institutions
resolved in accordance with the appeals t misine retation.Those revisions,a
procedures of the cognizant agency. misinterpretation. (OMB Circular A-21);State,local,and
5.Collection of unallowable costs and result of OMB and Federal agency federally-recognized Indian tribal
erroneous payments.Costs specifically efforts to implement Public Law 106— governments which are covered by 2
identified as unallowable and charged to 107,were effective on June 9,2004. CFR part 225 Cost Principles for State,
Federal awards either directly or indirectly In this document,we relocate OMB Local,and Indian Tribal Governments
will be refunded(including interest Circular A-122 to the CFR,in Title 2
chargeable in accordance with applicable (OMB Circular A-87);or hospitals.
Federal agency regulations). which was established on May 11,2004 (b)The principles deal with the
6.OMB assistance.To the extent that [69 FR 26276]as a central location for subject of cost determination,and make
problems are encountered among the Federal OMB and Federal agency policies on no attempt to identify the circumstances
agencies and/or governmental units in grants and agreements. or dictate the extent of agency and non-
connection with the negotiation and approval Our relocation of OMB Circular A- profit organization participation in the
process,OMB will lend assistance,as 122 does not change the substance of financing of a particular project.
required,to resolve such problems in a the circular.Other than adjustments Provision for profit or other increment
timely manner. needed to conform to the formatting above cost is outside the scope of this
[FR Doc.05-16649•Filed 8-30-05;8:45 am] requirements of the CFR,this document P
BILLING CODE 3110-01-P relocates in 2 CFR the version of OMB
Circular A-122 as revised by the May §230.15 Policy.
10,2004 notice. The principles are designed to
OFFICE OF MANAGEMENT AND List of Subjects in 2 CFR Part 230 provide that the Federal Government
BUDGET bear its fair share of costs except where
Accounting,Grant programs,Grants P
2 CFR Part 230 administration,Non-profit restricted or prohibited by law.The
organizations,Reporting and principles do not attempt to prescribe
Cost Principles for Non-Profit recordkeeping requirements. the extent of cost sharing or matching
Organizations(OMB Circular A-122) Dated:August 8,2005. on grants,contracts,or other
AGENCY:Office of Management and Joshua B.Bolters, agreements.However,such cost sharing
Director.ua or matching shall not be accomplished
Budget.NC
ACTION:Relocation ofthrough arbitrary limitations on
policy y guidance toAuthority and Issuance individual cost elements by Federal
2 CFR chapter II. agencies.
•For the reasons set forth above,the g
SUMMARY:The Office of Management Office of Budget Management and
and Budget(OMB)is relocating Circular g §230.20 Applicability.
A-122,"Cost Principles for Non-Profit amends 2 CFR Subtitle A,chapter II,by (a)These principles shall be used by
Organizations,"to Title 2 in the Code of adding a part 230 as set forth below. all Federal agencies in determining the
Federal Regulations(CFR),subtitle A, PART 230—COST PRINCIPLES FOR costs of work performed by non-profit
chapter II,part 230.This relocation is NON-PROFIT ORGANIZATIONS(OMB organizations under grants,cooperative
part of our broader initiative to create 2 CIRCULAR A-122) agreements,cost reimbursement
CF'K as a single location where the contracts,and other contracts in which
public can find both OMB guidance for Sec. costs are used in pricing,
grants and agreements and the 230.5 Purpose. administration,or settlement.All of
associated Federal agency implementing 230.10 Scope. these instruments are hereafter referred
230.15 Policy.
regulations.The broader initiative 230.20 Applicability, to as awards.The principles do not
provides a good foundation for 230.25 Definitions apply to awards under which an
streamlining and simplifying the policy 230.30 OMB responsibilities. organization is not required to account
framework for grants and agreements, 230.35 Federal agency responsibilities. to the Federal Government for actual
one objective of OMB and Federal 230.40 Effective date of changes. costs incurred.
US. N T
INFORMATION
GPO
OMB Guidance §200.501
5701-11, ("Travel and Subsistence Ex- Subpart F—Audit Requirements
penes; Mileage Allowances"), or by
the Administrator of General Services, GENERAL
or by the President (or his or her des-
ignee) pursuant to any provisions of §200•500 Purpose.
such subchapter must apply to travel This part sets forth standards for ob-
under Federal awards (48 CFR 31.205- taming consistency and uniformity
46(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 AUDITS
are unallowable except when such ac-
commodations would: §200.501 Audit requirements.
(i)Require circuitous routing; (a)Audit required.A non-Federal enti-
(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 say- that year in accordance with the provi-
ings;or sions of this part.
(v)Offer accommodations not reason- (b)Single audit. A non-Federal entity
ably adequate for the traveler's med- that expends $750,000 or more during
the non-Federal entity's fiscal year in
ical needs. The non-Federal entity
must justify and document these condi- Federal awards must have a singleh
tions on a case-by-case basis in order §200.5audit conducted in accordancep with
for the use' of first-class or business- elects t Scopev of proaudgrtam-specific
except isw auditen it
class airfare to be allowable in such ondu to have a cco dace with
conducted in accordance with para-
cases. graph(c)of this section.
(2) Unless a pattern of avoidance is (c) 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 cus- gram (excluding 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
available in the specific case. may elect to have a program-specific
(e) Air travel by other than commercial audit conducted in accordance with
carrier. Costs of travel by non-Federal §200.507 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 (including personnel awards expended were received from
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- cy, or pass-through entity in the case
graph (d) of this section, is unallow- of a subrecipient, approves in advance
able. a program-specific audit.
(d)Exemption when Federal awards ex-
§200.475 Trustees. Trended are less than$750,000.A non-Fed-
eral entity that expends less than
Travel and subsistence costs of trust- $750,000 during the non-Federal entity's
ees(or directors)at IltEs and nonprofit fiscal year in Federal awards is exempt
organizations are allowable. See also from Federal audit requirements for
§200.474 Travel costs. that year, except as noted in §200.503
Relation to other audit requirements,
171
§200.502 2 CFR Ch.II (1-1-14 Edition)
but records must be available for re- sponsibility.Methods to ensure oomph-
view or audit by appropriate officials ante for Federal awards made to for-
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 §200.502 Basis for determining Fed-
FFRDC as a separate entity for pur- eral awards expended.
poses of this part. (a) Determining Federal awards ex-
(f) Subrecipients.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 subrecipient are 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
as a contractor are.not Federal awards. the terms and conditions of Federal
Section §200.330 Subrecipient and con- awards, such as: expenditure/expense
tractor determinations should be con- transactions associated with awards in-
sidered in determining whether pay- chiding grants, cost-reimbursement
ments constitute a Federal award or a contracts under the FAR, compacts
payment for goods or services provided with Indian Tribes, cooperative agree-
as a contractor. ments, 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-
mally do not pass through to contras- riod when insurance is in force.
tors. However, the auditee is respon- (b) Loan and loan guarantees (loans).
Bible for ensuring compliance for pro- Since the Federal government is at
curement transactions which are strut- 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 compli- except as noted in paragraphs (c) 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- ceived during the audit period;plus
dude determining whether these trans- (2)Beginning of the audit period bal-
actions are in compliance with Federal awe of loans from previous years for
statutes, regulations, and the terms which the Federal government imposes
and conditions of Federal awards. continuing compliance requirements;
(h) For-profit subrecipient. 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- (a)Loan and loan guarantees(loans)at
ments, as necessary, to ensure oomph- IHEs.when loans are made to students
ance by for-profit subrecipients. The of an IHE but the IHE does not make
agreement with the for-profit sub- the loans, then only the value of loans
recipient should describe applicable made during 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
172
C% ?S'-1 ►/5)/ f I
Federal Sub-award Reporting System(FSRS)
9 Digit DUNS Number:
Organization Name:
Address:
Street
City State Zip Code+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?
O YES O NO
If YES please answer Question 2
Question 2:Does the public have access to information about the compensation of the executives in your organization
(the legal entity to which the DUNS number provided belongs)through periodic reports filed under section 13(a)or
15(d)of the Securities Exchange Act of 1934(15 U.S.0 78m(a),78o(d)or section 6104 of the Internal Revenue Code of
1986?
YES NO
If NO please answer Question 3
Question 3:What are the Names and Total Compensation for the top 5 employees in your organization?
Name Compensation
1 $
2 $
3 $•
4 $
5 $
Signature of Authorized Official Date
Applicant: City of Omaha NE0039C7D011001
Project: City of Omaha NE0039L7D011405
Recipient Acknowledgement
Instructions:
This text box presents comments and alerts, recorded by HUD,that do not qualify as issues or
conditions: This text box includes comments and alerts written by HUD for the grant recipient.
These comments cannot be edited, and are meant to clarify issues,conditions, and other
nuances of the post award process that HUD wishes to communicate.
A red message will display below the text box if Issues or Conditions were placed on this
project by HUD and the recipient has not acknowledged them.As long as the message is visible,
the recipient will not be able to submit the Issues and Conditions form.Additional red messaged
may appear to alert the recipient to actions that must be taken using screens that appear later in
this form or to expectations that HUD has set for the operation of the project(e.g.adhering to
Housing First principles, if applicable).
For the itemized issues and conditions,three columns appear.The first column, "HUD Award,"
includes a check box for each row and each relevant issue or condition. Boxes in this column
have been selected by HUD during the HUD application review.The second column, "Recipient
Acknowledgement,"includes a check box for each row. Recipients must click the check box for
each relevant issue or condition selected by HUD to acknowledge the issue or condition. If either
#6F or#13 has been selected additional issues and conditions have been placed on the award
using the 6 "Other"check boxes and text boxes at the bottom of the screen. Recipients must
check the box to acknowledge row#6f or#13 and the box associated with the"Other"conditions
recorded at the bottom of the screen.The third column contains the actual issues and
conditions.
Issues,Conditions, and Alerts
Issue-a concern or a point of clarification that may require HUD field office monitoring and/or
may require the applicant to submit additional information to ensure compliance with program
requirements.An issue may or may not be resolved before grant agreement execution.
Condition-a deficiency in the project application that is related to a regulation, statute,or
program requirement and must be satisfied before a grant agreement can be executed.
Alert-a general comment or warning to the HUD field office related to one or more potential
problems with the applicant, subrecipient(s), or project application.An alert may or may not
result in an issue or a condition.
Additional Resources:
https://www.h udexchange.info/e-snaps/guides/coc-program-competition-resources/
This text box presents comments and alerts, recorded by HUD,that do not
qualify as issues or conditions.
•
Additional alert(s) for recipients:
Recipients must submit match documentation to HUD before grant
agreement. Upload match commitments using the Attachments Screen.
Applicant Renewal Issues and Conditions Page 1 07/31/2015
Applicant: City of Omaha NEO039C7D011001
Project: City of Omaha NEO039L7D011405
The project applicant answered 'Yes'to the question 'Does the project
follow a Housing First model?' on Form 3B of the Project Application. The
CoC was scored to the extent to which project applicants responded 'Yes'
to this question. Any project that indicated that it follows a Housing First
model cannot place preconditions or eligibility requirements—beyond
HUD's eligibility requirements—on persons entering housing, nor can it
require program participants to participate in supportive service activities
or make other rules, such as sobriety, a condition of housing. Recipients
may offer and encourage program participants to participate in services,
but there may be no time limit as to when he/she must do so.
HUD has made at least one budget change that may require reconciliation
before submission by adjusting budget subcategories on the following
screen(s). This may also require a change to the total match commitment
on the Match/Leverage screen.
- Rental Assistance
- Match
HUD Recipient Conditions Applicable to ALL Projects
Award Acknowledgement
1.Incomplete or missing certification forms.
The following certification forms were either
incomplete or missing from the e-snaps
Applicant Profile. The form(s)must be
completed and uploaded into the Applicant
Profile in e-snaps before HUD can execute a
grant agreement.Please notify the local HUD
Field Office once this condition has been
satisfied in e-snaps.
E s ? as r a a:asz n aee ea - t 4 ,s r fis r S,"
ANP F A X ,i �,I, �g� - Eg r;� g :b , a.Disclosure of Lobbying Activities,(if
€I x� ° I 54 , I f � i�sTM lobbying)(SF-LLL)
zg t +� s Zs9s `4 z:Tt i l�
,��€ �� �� _����� � �� 1� �PE b.Recipient Disclosure/Update Report
4e % z z 3 a ": e a- 8 3:a 1 g €s 2 p p
O ,� c riNN i wellal
(HUD form 2880)
:`g", i Ai z § " a:ti 1 g c.Drug-Free Workplace(HUD form
` - a`` -jot [� s a o ;=are ;. 50070)
4" n r-�a� s cs«�#s�T"° ,rye P ,ears,'i ifat i 8 _ f 31aa0 i14
a., { P a o,; a, a v -,v 'k s�#?n"'h� n.-,, +t4,, a s. � ,,... asp
g ' ,m r. 4 41Kli it a a —�" a 2.Conductingbusiness in accordance with
gitotti �4 at 1 g ct C,:,, �� it#0'core values nd ethical standards not
& rx¢ ri i €8�'�? S r1 3�aa ii 4R g x a.
s. '` ,Aria '3§Ar g e �4 %, c,,s Z, t x 3 rsx t confirmed.
a °€llgi li E a E � s s _ �s '.�
z 4 !h � 3 � , � Before HUD can execute the grant
,� Fa ;, , m3 agreement,the recipient must upload its
4'.� ' - ea q 4. re
code of conduct into the Applicant Profile in
a - zg en e-snaps.The recipient must satisfy this
t , E _ condition before HUD can execute a grant
, ; �" t :R i agreement.Please notify the local HUD Field
` �4b , g illy i , e I a Office once this condition has been satisfied.
s aft 4,A s til, -u ss ` 2 y a da g zp 4 l��r ' tz' gs a ,3 #e ,zi a 3.The Central Contract tract Registration
istrationi ,gs MA � €,,i � s, � g f a - Ya' 4 9 (CCR)System for Award Management nt(SAM)_ . ¥ a
k4 - Wot r da b3ilatri- a -iara 3 r a � ilfRO A m2 7a iaviwta Bsn ---— .
^a.° fi `s� �.a �47 -..z u^7 s a��..�.� aia' i� ays� a {� x. �
a,y4 � ., r p m a -g ' � �g t € � 4.Proposedproject artici ants;as selected
'�„ 4 s a P participants;
F'SP �� a if 8_ s a � a �,4 € on Form 5C or described in narrative
x 4 a tk 3: a 4 4 E i 4 �_inI A I a
ag' -Vg�� , 1101M, i,,,,, .� w.,.;6- da-t..,. (Renewal Only).
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Applicant Renewal Issues and Conditions Page 2 07/31/2015
Applicant: City of Omaha NE0039C7D011001
Project: City of Omaha NEO039L7D011405
..'€ S Sary .d6 P§° &at.'SP i d "5' fig E Cd SlF 3°•"'
1 a ,g:g,
i_ ter A a6 x = , , ▪ i E, , a , 5 Assisting homeless under other Federal
i ,, € ... ,& ,A,gg � . l��,, statutes.
Fps gat F a g--,a s� , „ . yip A�,xa�b 3€'' 9 1 i r'>u e.e'
' Q `a l P qY ... .x A�__. ,rn...-...__R... _ ihfl<W§'a#a 'nS9
M k E E 4• � 1 4 , '-1▪4,01 M 6.Special performance/capacity.
S' 141 48011 Before grant agreement execution,the
on 3 g m� ��§ t 9, _ recipient must provide a written,
a i3 i � t ki"" � comprehensive management plan addressing$ � � � 4a "� the capacity concern(s)listed below.
• s�? '-'11 `5 z,--o m : o = i 1.019P ><a€'iii Rii -"a g €E �€a,€V I Ia i a.Outstanding obligation to HUD that is
€ ,11 i $ � � u 0 a E , i ,; € :q 3 In arrears or no payment schedule
't"* Lt• ` l' "ill a' s,.Yams ' g ll 'i,;l'' .,A >,m. �",.6 i : .',i,: ' .. established.
• ri , . b.Unresolved construction delays,or
Ikalltilli'1 & ' S't s, �° monitoring or audit findings. y
a€ 'a z tr • s>' E s ri61.,,a€a .. i .,• flit r� t
F;tea >€ L al 1 c.History r poor wd„financial
�z egg�t3€€ i, `Z�� �.4� a.i,r. z ��� � o§ management/drawdown issues.
. 114114 , f.' _ �, a,. 't:$ ' i. z ; s ue
�& th
�3g • �� • Yv. s d.History of low occupancy levels.
� �t ��r� � "tea �� ���>: � ��`"�' � s��� xa i a��d �'�s �`...
r��� � � '�• wvi �� e.Lackt of experience in administering
€ SQ a 8 Ai a . s a a,a ,ram h .Y E : the project type.
a�� � F��� a x�" ��� E � s'� i� aov� a s��.�z �€ �S��dd ss��
i �� �� `�.i o ka t f f.Ottiffitm her capacity issues(specified
iillit F�a € g , ��� below).
a_ "'a'' 4 € 3,- e- tvaa� �z rz 'tom''( d *
l € gi g � 7.Before grant agreement execution,the
a E tiO d t,, , It sItitT* . E�� t4 recipient must adjust the eligible supportive
sn �� � �€ � 0 � services and/or the operating costs budget
,i ,�j t . A e ▪• �,, ' ' line items to be in com Nance with the CoC
€a. ,s € 3s `�3 ' +�. Y�xs`> sNa �+�_ .a'&���5 �I�I - s 3 sfs p
s a' ,€ rE " 11 �� �` ,,1 ' ra 'S € Program interim rule,Subpart D—Program
s a ��� Components and Eligible Costs,Sections
1 ia1 1� � i 0.7 1.a ' � °1�- 5." „`„ 1 ,§578.53 and§578.55(Renewal pojects only).
.$�f 3 '� r.cif# �' � �
•x 1174N2� `L " ��� 10 . E ,, € . p fix€ � 8.APR not submitted.
t ° 0 N d�: a.:1 a em r£.. : >i ..
��.� `�s ��" °� �� �-��i �t� t g� �< , g��� �,t, .Unclear expansion activities.
lfri'4 x-'. '� � ° �, a it�,.a, a s r. - ., ..aaP, 0€ €A
., iwiail rem,„ ,,A 10.Ineligible budget combinations.
ark .`3i „,, 1."Q'?d 4
4 4- 6 a s€ 1. - ins Ea is tt 0p �.� The following funds were requested within
€ l a the same project and cannot be used for the
3 ii ? Ro €it N€s °aa k�`€t,..i � same unit and/or sdtruchlre:
�`� #�N� ; 1� a a , r ,€ i3 a.Leasin and ac uisition
1' +€ 1:7;;; i,'#' .. � a�t 9�"R'�';.` € t i#$44 1 1.4411 s�s St ,;9�.¢ .,.�i44.01 ,and new construction
rehabilitation,
1;'' s r:S14 "'A+sa . c ',t£ ,. e• lls lh # . i#, ?°taa&,ss°€a P.?'ae"a�. .ssa"' e e
x >< i ` s, 8ti z d,p. ,` � ',, b.Tenant-based rental assistance and
, gokimwM
44� �`gg itiRk- za riffs 2 4 5 1 f • � ,a d.40-1�'k•-ktR,•t! � p€ 1 acquisition,rehabilitation,and new
c r e€<.,t `� 3a't f a -c . *,ya. .4 a� 4&N�7' Y construction
*'3 r' m'�4 6. >��' a ----'" c.shoed;term/Medium term rental
is v zr
'' k"' a �� �4� 4 � ; � �i._ assistanc nd acquisition,rehabilitation,
`i.,. 4 '�"�' # �Sk G ,fix`a f,� '!x#; ' C 3,``�
„�, � � �� � , �£' � ��� � �' � .� - and new construction
�f�kjz��' .�s-€4�-�'„z�„ e �� .i a s�-��w '�a�'ag� .�,�r�,�a�gt�,ts � � �s ��za�'
•, .� �,, " ��a s , � � , ���� d.Rental assistance and leasing
��� � h [ ��z�^a� ,�. r�� �, a c �r����5 � �.T a k�i e F �€r,� � a
a a''�r $r a 4uiir s € ° s:. r�- s. as v:+€€wEs¢stlrm� '
s 3 �''Sz # , IT lip e ati A€ .' Ng. e.Rental assistance and operating
z x t r t t , a 't ., 4 e n€s
.40z l a t 4 1"'3]: P a i al„:,,ds lt'' k 8a4 tr 4 -h 1€Yit e e **' :° irnd. `i,'
: s i *" »,.k„.,:,N,�,,R o-en a00,..h 04-- ,.__o.FFa,til ....„, _ .:,,3...�,�„su.: urn: e..,.��+,.? ,�
• s a ae'£ € 3
fi . E €` �Q$ L 11.Match not demonstrated.
Applicant Renewal Issues and Conditions Page 3 07/31/2015
Applicant: City of Omaha NE0039C7D011001
•
Project: City of Omaha NE0039L7D011405
The recipient must supply evidence of the
appropriate match,cash or in-kind match for
the total grant amount;except for leasing,
with no less than 25 percent of cash and/or
in-kind contributions. Written
6� �
documentation of match,cash and/or in-kind
match must be submitted to the Local HUD
Field Office before HUD can execute the
£ i grant agreement.[24 CFR 578.73]
" • • 12.Conflict of Interest-Leasing.
a a�i5 s 5a t g.,,, a - 5g
' x a .€ �E ,. ..r
€ 13.Other policy and program related
X conditions
Conditions Applicable for PH Projects
4
„ € 14.Renewal Projects:For a Samaritan
Housing Initiative(as stated in the FY2005,
i gil � �� , ,a, FY2006,FY2007,and FY2008 CoC NOFAs)or
li �s((; E o-g uu ' °� ' fr €-� E Permanent HousingBonus(as stated in te
€t3� G & P4' SH "�a,i,' lE -' '£Sia i6 £
�; FY200g,FY2010,FY2011,and FY2012 CoC
Apr ; I E, :NOFAs,no more than 20 percent of the total
of the grant's eligible project costs for each
=grant(grant total minus project
•Il,, , £` administration costs up to 10 percent)may
�� £ be used for case management.HUD will not
' `fund any sup')supportive services other than case
managemen or renewing Samaritan
Housing Initiative or permanent housing
?, bonus projects.The remaining 80 percent of
the grant's eligible project costs must be
`` used for eligible housing costs(I e.,leasing,
' rental assistance,or operating costs).
{ a, Before HUD can execute the grant
E ° agreemee
nt,the Supportive Services budget
ili
t ti ��i fit" 3,g ust be
mmanagemenrev t forlsed tnoo i monc
re than e 20 psasercent of
£ the projects total costs.Recipients will have
s �� the option to redistribute the additional funds
1 to eligible housing costs(i.e.,new
a ° construction,acquisition,rehabilitation,
leasing,rental assistance,or operating
( 4 costs).
�
Conditions Applicable for TH Projects
15.Recipient was awarded funds under the
2006 Rapid Re-Housing for Families FY
rg
Demonstration program and must remain as€ transitional housing with leasing.
1 M -44 89 t
ss " j Conditions Applicable for Dedicated HMISd't 16.HMIS Lead does not match the HMIS Lead
« `1 , .: listed in the CoC Applicant Profile.
Additional Issues and Conditions
Other 1
,•, X
X
Other 2
-
Other 3
EE � :£ :X - X
Applicant Renewal Issues and Conditions Page 4 07/31/2015
Applicant: City of Omaha NE0039C7D011001
Project: City of Omaha NE0039L7D011405
III£ f as ea Other 4
1 a 1,� a �£ €z�1 ,A0. 1410:, tOrtial� t Other 5
" A 44 01 ` t1� �� r � z t.
Other12". 6
,R k1 {k�£ FqZ,; z �: sa�E su 4a € &£ £ h x..
Additional issues and conditions:
Other 1
Housing First -Attach a written acknowledgement that all the requirements oif
the housing first model are understood and that this project will operate within
those requirements.
Other 2
Budget - The awarded budget for rental assistance was more than requested.
Modify the budget to be in alignment with the awarded amount.
Other 3
Match - Due to the increased award amount the required match has increased.
Change the match amount in the budget and attach supporting documentation
committing to the increased amount of match.
Other 4
Other 5
•
Other 6
Applicant Renewal Issues and Conditions Page 5 07/31/2015
Applicant: City of Omaha NE0039C7D011001
Project: City of Omaha NE0039L7D011405
Attachments
Instructions:
01)Match Documentation: Upload the required match documentation for this grant.
02)— 10)Attachments: Upload any other documents that specifically address issues and
conditions being reconciled by the recipient. If there are not enough links for all of your
attachments, use a zip file to attach multiple documents.
�� ?c�u�� � ,. ,`""...
s Ycu a �igFj a s t :! #*� ° ra E$ 6na�8 t n a s t. tw �A
s�C'iz..a .,. � > .�. i��s.��.: ��..�,.M e.� �` �, �� z. �c��a� sz,����s,_��t"�t,��.��_�,_�.was �� 3��� att gym_..
01) Match Documentation Yes Match documentation 07/31/2015
02)Attachment(s) No Housing First com... 07/31/2015
03)Attachment(s) No
04)Attachment(s) No
05)Attachment(s) No
06)Attachment(s) No
07)Attachment(s) No
08)Attachment(s) No
09)Attachment(s) No
10)Attachment(s) No
Applicant Renewal Issues and Conditions Page 6 07/31/2015
Applicant: City of Omaha NE0039C7D011001
Project: City of Omaha NE0039L7D011405
Attachment Details
Document Description: Match documentation
Attachment Details
Document Description: Housing First commitment
Attachment Details
Document Description:
Attachment Details
Document Description:
Attachment Details
Document Description:
Attachment Details
Document Description:
Attachment Details
Applicant Renewal Issues and Conditions Page 7 07/31/2015
Applicant: City of Omaha NE0039C7D011001
Project: City of Omaha NE0039L7D011405
Document Description:
Attachment Details
Document Description:
Attachment Details
Document Description:
Attachment Details
Document Description:
Applicant Renewal Issues and Conditions Page 8 07/31/2015
Applicant: City of Omaha NE0039C7D011001
Project: City of Omaha NE0039L7D011405
Adjustments
Instructions:
HUD will only accept adjustments that specifically address and resolve an issue or condition or
reconcile a budget change made by HUD to the conditional award.
Select"Yes"or"No"to the question, "Has HUD required that you adjust information submitted
with your application to resolve Issues and Conditions and/or reconcile budget changes made by
HUD?"
If"No"then select"Next".
If"Yes"then a text box will appear that asks, "Briefly describe the adjustments being
requested." List the adjustments(bullets are appropriate)and then select"Save&Next".
Additional Resources:
https://www.hudexchange.info/e-snaps/guides/coc-program-com petition-resources/
Has HUD required that you adjust information Yes
submitted with your application to resolve
Issues and Conditions and/or reconcile
budget changes made by HUD?
Adjustments can only be made to resolve issues and conditions and to
reconcile budget changes made by HUD before award. No new requests
for changes to your project may be initiated using this form. All
adjustments will be reviewed by HUD before grant agreement and may be
rejected.
Briefly describe the adjustments being requested.
We are required to provide evidence that our project is a housing first project;
that we have sufficient match; and that our budget has been revised to reflect
the amount for which the project is eligible.
Applicant Renewal Issues and Conditions Page 9 07/31/2015
Applicant: City of Omaha NE0039C7D011001
Project: City of Omaha NE0039L7D011405
1A. Application Type
Instructions:
1.Type of Submission:This field is populated and cannot be changed.
2.Type of Application:This field is populated with the type of project application opened and
cannot be changed.
3. Date Received: No action needed.This field is populated with the date on which the
application is submitted. The date populated cannot be edited.
4.Applicant Identifier: Leave this field blank.
5a. Federal Entity Identifier: Leave this field blank.
5b. Federal Award Identifier: (required) This field will be blank for all renewals applications.The
correct expiring grant number must be entered and exactly match the grant number entered on
the HUD-approved Grant Inventory Worksheet.The number may have either 15 or 11 digits and
begins with the initials of your state or territory. Here are three examples of what your grant
number might look like: NY0999B2T001104, MS0999C1T001003, CAO1C900151.
6. Date Received by State: Leave this field blank.
7. State Application Identifier: Leave this field blank.
Additional Resources:
Application Detailed Instructions (on left menu)
http://esnaps.hudhre.info
This information cannot be edited. If updates are needed to this
information, exit this step and update the Project Applicant Profile.
1. Type of Submission:
2. Type of Application: Renewal Project Application
If"Revision", select appropriate letter(s):
If"Other", specify:
3. Date Received: 07/31/2015
4. Applicant Identifier:
5a. Federal Entity Identifier:
5b. Federal Award Identifier: NE0039C7D011001
6. Date Received by State:
7. State Application Identifier:
Applicant Renewal Issues and Conditions Page 10 07/31/2015
Applicant: City of Omaha NE0039C7D011001
Project: City of Omaha NE0039L7D011405
1 B. Legal Applicant
Instructions:
8.Applicant:The following fields are populated from the Applicant Profile and must reflect the
information from the applicant organization that can legally request homeless assistance funding
from HUD.
a. Legal Name: This field is populated from the Applicant Profile. It is important that the
organization has registered with the Central Contractor Registry. Information on registering with
CCR may be obtained online at- http://esnaps.hudhre.info
b. Employer/Taxpayer Number(EIN/TIN): This field is populated from the Applicant Profile.
c. Organizational DUNS: This field is populated from the Applicant Profile. The number will
include 9 digits. If the legal applicant organization is not in the US or is not legally organized,
enter 444444444. Information on obtaining a DUNS number may be obtained online at-
http://www.dnb.com
d.Address: This field is populated from the Applicant Profile.
e. Organizational Unit: If applicable,this field is populated from the Applicant Profile.
f. Name and contact information of person to be contacted on matters involving this
applicant: This field is populated from the Applicant Profile and from the alternate point of
contact for the applicant organization information.This person may or may not be the authorized
representative.
Additional Resources:
Application Detailed instructions (on left menu)
http://esnaps.hudhre.info
This information cannot be edited. If updates are needed to this
information, exit this step and update the Project Applicant Profile.
8. Applicant
a. Legal Name: City of Omaha
b. Employer/Taxpayer Identification Number 47-6006304
(EINITIN):
c.Organizational DUNS: 076981265 PL
US
4
d. Address
Street 1: 1819 Farnam
Applicant Renewal Issues and Conditions Page 11 07/31/2015
Applicant: City of Omaha NE0039C7D011001
Project: City of Omaha NE0039L7D011405
Street 2:
City: Omaha
County: Douglas
State: Nebraska
Country: United States
Zip / Postal Code: 68183
e. Organizational Unit(optional)
Department Name: City Planning
Division Name:
f. Name and contact information of person to
be
contacted on matters involving this
application
Prefix: Mr.
First Name: David
Middle Name:
Last Name: Thomas
Suffix: Ph.D.
Title: Assistant Planning Director
Organizational Affiliation: City of Omaha
Telephone Number: (402) 444-5150
Extension: 2008
Fax Number: (402) 444-6140
Email: david.thomas@cityofomaha.org
Applicant Renewal Issues and Conditions Page 12 07/31/2015
Applicant: City of Omaha NE0039C7D011001
Project: City of Omaha NE0039L7D011405
1 C. Application Details
Instructions:
9.Type of Applicant: (required)This field is populated from the Applicant Profile.Applicants
cannot modify the populated data on this form. However,applicants may modify the Applicant
Profile to correct any errors identified.
10. Name Of Federal Agency: This field is populated with the Department of Housing and
Urban Development. The field cannot be edited.
11. Catalog Of Federal Domestic Assistance(CFDA)Title/Number: This field is populated with
the CFDA title and number.
12. Funding Opportunity Number/Title: This field is populated with the funding opportunity
number and title of the opportunity under which assistance is requested,as found in this year's
Federal Register announcement.
13. Competition Identification Number/Title: Leave this field blank.
Additional Resources:
Application Detailed Instructions (on left menu)
http://esnaps.hudhre.info
This information cannot be edited. If updates are needed to this
information, exit this step and update the Project Applicant Profile.
9. Type of Applicant: C. City or Township Government
If"Other" please specify:
10. Name of Federal Agency: Department of Housing and Urban Development
11. Catalog of Federal Domestic Assistance CoC Program
Title:
CFDA Number: 14.267
12. Funding Opportunity Number: FR-5600-N-41
Title: Continuum of Care Homeless Assistance
Competition
13. Competition Identification Number:
Title:
Applicant Renewal Issues and Conditions Page 13 07/31/2015
Applicant: City of Omaha NE0039C7D011001
Project: City of Omaha NE0039L7D011405
1 D. Congressional District(s)
Instructions:
All fields on this screen will populate with information from the project application. These fields
can be adjusted.
Areas Affected By Project: This field is required. Select the State(s)in which the proposed
project will operate and serve the homeless.
Descriptive Title of Applicant's Project:This field is populated with the name entered on the
Project form when the project application was created.To change the project name,click Back
to the Submission List and click on"Projects"on the left hand menu. Click on the magnifying
glass next to the project name to edit.
Congressional District(s):
a.Applicant:This field populates from the Project Applicant Profile. Project applicants cannot
modify the data in this field. However, project applicants may modify the Project Applicant Profile
in e-snaps to correct an error.
b. Project:This field is required. Select the congressional district(s)in which the project
operates. For new projects,select the district(s)in which the project is expected to operate.
Proposed Project Start and End Dates: In this required field, indicate the operating start date
and end date for the project. For new project applications, indicate the estimated operating start
and end date of the project.
Estimated Funding: Fields intentionally left blank, cannot edit.
Additional Resources:
https://www.hud exchange.info/e-snaps/guides/coc-program-competition-resources/
14. Area(s) affected by the project (State(s) Nebraska
only):
(for multiple selections hold CTRL key)
15. Descriptive Title of Applicant's Project: City of Omaha
16. Congressional District(s):
a. Applicant: NE-002
b. Project: NE-002
(for multiple selections hold CTRL key)
17. Proposed Project
a. Start Date: 08/01/2014
Applicant Renewal Issues and Conditions Page 14 07/31/2015
Applicant: City of Omaha NE0039C7D011001
Project: City of Omaha NE0039L7D011405
b. End Date: 07/31/2015
Applicant Renewal Issues and Conditions Page 15 07/31/2015
Applicant: City of Omaha NE0039C7D011001
Project: City of Omaha NE0039L7D011405
1 E. Compliance
Instructions:
19. Is Application Subject to Review By State Executive Order 12372 Process?: (required)
Select the appropriate dropdown option that applies to the Applicant applying for homeless
assistance funding.Applicants should contact the State Single Point of Contact(SPOC)for
Federal Executive Order 12372 to determine whether the application is subject to the State
intergovernmental review process.
Click the following link to access the lists of those states that have chosen to participate in the
intergovernmental review process: http://www.whitehouse.gov/omb/grants_spoc
if"YES" is selected enter the date this application was made available to the State for review.
20. Is the Applicant Deliquent on any Federal Debt?:(required)Select the appropriate
dropdown option that applies to the Applicant applying for homeless assistance funding.This
question applies to the applicant organization, not the person who signs as the authorized
representative. Categories of debt include delinquent audit disallowances, loans,and taxes.
If"YES" is selected include an explanation in the space provided on this screen.
Additional Resources:
Application Detailed Instructions(on left menu)
http://esnaps.hudhre.info
This information cannot be edited. If updates are needed to this
information, exit this step and update the Project Applicant Profile.
19. Is the Application Subject to Review By b. Program is subject to E.O. 12372 but has not
State Executive Order 12372 Process? been selected by the State for review.
If"YES", enter the date this application was
made available to the State for review:
20. Is the Applicant delinquent on any Federal No
debt?
If"YES," provide an explanation:
Applicant Renewal Issues and Conditions Page 16 07/31/2015
Applicant: City of Omaha NE0039C7D011001
Project: City of Omaha NE0039L7D011405
1F. Declaration
Instructions:
I Agree: (required)Select the checkbox next to'I Agree'to(1)certify to the statements
contained in the list of certifications**, (2)certify that the statements herein are true,complete,
and accurate to the best of my knowledge, (3)certify that the required assurances**are
provided, and (4)agree to comply with any resulting terms if I accept an award.Any false,
fictitious,or fraudulent statements or claims may subject the authorized representative and the
applicant organization to criminal, civil, or administrative penalties .(U.S.Code,Title 218, Section
1001)
**The list of certifications and assurances are contained in the CoC NOFA and in the e-snaps
Applicant Profile.
21.Authorized Representative:The authorized representative's information is populated on this
form from the Applicant Profile.A copy of the governing body's authorization for this person to
sign this application as the official representative must be on file in the applicant's office.
Additional Resources:
Application Detailed Instructions(on left menu)
http://esnaps.hudhre.info
This information cannot be edited. If updates are needed to this
information, exit this step and update the Project Applicant Profile.
By signing and submitting this application, I certify (1) to the statements
contained in the list of certifications** and (2)that the statements herein
are true, complete, and accurate to the best of my knowledge. I also
provide the required assurances** and agree to comply with any resulting
terms if I accept an award. I am aware that any false, fictitious, or
fraudulent statements or claims may subject me to criminal, civil, or
administrative penalties. (U.S. Code, Title 218, Section 1001)
I AGREE: X
21. Authorized Representative
Prefix: Mr.
First Name: David
Middle Name:
Last Name: Thomas
Suffix: Ph.D.
Applicant Renewal Issues and Conditions Page 17 07/31/2015
Applicant: City of Omaha NE0039C7D011001
Project: City of Omaha NE0039L7D011405
Title: Assistant Planning Director
Telephone Number: (402)444-5150
(Format: 123-456-7890)
Fax Number: (402)444-6140
(Format: 123-456-7890)
Email: david.thomas@cityofomaha.org
Signature of Authorized Representative: Considered signed upon submission in e-snaps.
Date Signed: 07/31/2015
Applicant Renewal Issues and Conditions Page 18 07/31/2015
Applicant: City of Omaha NE0039C7D011001
Project: City of Omaha NE0039L7D011405
2A. Project Subrecipients
This form lists the subrecipient organization(s) for the project. To add a
subrecipient, select the icon. To view or update subrecipient
information already listed, select the view option.
Total Expected Sub-Awards: $0
ganization€ 4 E fins a x W
Alietwo
., '�. ,�(`3..,iK § ks......n , .,,,,.,...�-.:. `�.,..,,,a,. ., ,.: F$ gal
This list contains no items
Applicant Renewal Issues and Conditions Page 19 07/31/2015
Applicant: City of Omaha NE0039C7D011001
Project: City of Omaha NE0039L7D011405
3A. Project Detail
Instructions:
The fields on this screen are available for reference only and cannot be adjusted.
1. Awarded Grant Number: NE0039C7D011001
(e.g.,the"Federal Award Identifier"indicated on form 1A.Application Type)
2a. CoC Number and Name: NE-501 - Omaha/Council Bluffs CoC
3. Project Name: City of Omaha
4. Project Status: Standard
Renewal HUD Adjustment
Project Award
Application
5.Component Type: PH PH PH
5. Component Type: PH
This is a hidden field that maintains the confirmed component type, and drives visibility of
formlets and calculated values in grids.
6. Is Energy Star used at one or more of the Yes
proposed properties?
7. Does this project use one or more No
properties that have been conveyed through
the Title V process?
Applicant Renewal Issues and Conditions Page 20 07/31/2015
Applicant: City of Omaha NE0039C7D011001
Project: City of Omaha NE0039L7D011405
3B. Project Description
Instructions:
Applicant Renewal Issues and Conditions Page 21 07/31/2015
Applicant: City of Omaha NE0039C7D011001
Project: City of Omaha NE0039L7D011405
All fields on this screen will populate with information from the project application. Many fields
can be adjusted directly. For others,data can only be entered under the Adjustment column.
Data under the New Submission column populates from the project application. Data under the
HUD Award column populates from the HUD conditional award.
A description that addresses the entire scope of the proposed project: This field populated
with the information from the project application. It cannot be adjusted.
Provide changes, if required,to the description that addresses the entire scope of the proposed
project: This field populates with information from the project application. It can be adjusted. A
project description should be complete and concise. It must address the entire scope of the
amended project, including the details from Terminating grants under a grant consolidation. The
project description should address the entire scope of the project, including a clear picture of the
target population(s)to be served,the plan for addressing the identified needs/issues of the CoC
target population(s), projected outcome(s), and coordination with other source(s)/partner(s).The
narrative is expected to describe the project at full operational capacity.The description should
be consistent with and make reference to other parts of this application.
Does your project participate in a CoC Coordinated Assessment System: This is a required
field. Select"Yes"if the project is currently participating in a coordinated assessment system. If
a coordinated assessment system does not exist in the CoC or if the project does not participate,
select"No."
Does your project have a specific population focus: This is a required field. Select"Yes"if your
project has special capacity in its facilities, program designs,tools, outreach or methodologies
for a specific subpopulation or subpopulations. This does not necessarily mean that the project
exclusively serves that subpopulation(s), but rather that they are uniquely equipped to serve
them. If"Yes"is selected, select the relevant checkbox(es)to identify the project's population
focus.
PH PROJECTS ONLY
Does the project follow a"Housing First"model: This is a required field for PH projects only.
Select"Yes"if the project currently follows a housing first approach that allows the homeless to
enter without barriers such as income, sobriety, etc. Select"No"if the project does not follow a
housing first approach.
Does the PH project provide PSH or RRH: This is a required field. If PSH is selected, a follow
up field will appear with the following pre-populated, "Unlimited Assistance." If RRH is selected,
a follow-up field will appear in which the applicant will need to" Indicate the maximum length of
assistance". RRH projects may provide assistance to participants for a period of up to 24
months but may choose from 3, 12, 18, and 24 month periods.There is no time limit for PSH
projects. Therefore,when PSH is selected, "Unlimited Assistance"will automatically populate
and will be read only.
TH AND SSO PROJECTS ONLY:
Do you plan on serving homeless households with children and youth defined as homeless
under other federal statutes(Paragraph 3 of the definition of homeless found at 24 CFR 578.3)?
Please note that no project is permitted to serve this population unless the CoC has requested
and is approved to do so: This is a required field. Projects are only permitted to serve
households with children and youth defined as homeless under other federal statutes
(Paragraph 3 of the definition of homeless found at 24 CFR 578.3), if the CoC has requested
and is approved to use funds for such a purpose. CoCs that wish to request that projects within
the CoC be permitted to use funds to serve this population had to identify the specific project(s)
that would use funding for this purpose(up to 10 percent of CoC total award)by submitting an
attachment with the CoC Application. HUD will only consider TH and SSO projects for approval
under the above conditions.
TH PROJECTS ONLY:
Indicate the maximum length of assistance: This is a required field. The maximum length of
assistance allowed for TH projects is 24 months.
PH AND TH PROJECTS ONLY:
Applicant Renewal Issues and Conditions Page 22 07/31/2015
Applicant: City of Omaha NE0039C7D011001
Project: City of Omaha NE0039L7D011405
Does the project request costs under the rental assistance budget line item? This is a required
field. If requesting rental assistance, select Yes from the dropdown menu.. If not requesting
rental assistance in this project application, select No.
Describe the method for determining the type,amount, and duration of rental assistance that
participants can receive. If the project is requesting rental assistance,describe the method or
process the applicant will use to determine the type,amount,and duration of rental assistance
that participants can receive.
Is this a CoC Program leasing or former SHP project that had been approved by HUD to revise
the renewal project budget from leasing to rental assistance? (This change must have been
listed on the final HUD-approved GIW. See 24 CFR 578.49(b)(8))This is a required field. "Yes"
should only be selected if the change from leasing to rental assistance was approved by HUD
during the GIW process.
Additional Resources:
https://www.hudexchange.i nfo/e-snaps/guides/coc-program-competition-resources/
1a. Application description that addresses the entire scope of the
proposed project.
This project provides twenty-two units of permanent supportive housing for
chronically homeless individuals with severe mental illness. In many cases,
participants suffer from substance abuse as well as severe mental illness.
The City of Omaha is the project applicant and subcontracts with the Omaha
Housing Authority (OHA) to administer the program. OHA screens participants
for eligibility (documenting homelessness and disability), issues rental
assistance vouchers in the appropriate amount contingent on the securing of
housing that is affordable and meets Housing Quality Standards, determines
"rent reasonableness" of prospective housing, inspects and maintains
documentation that housing meets Housing Quality Standards, determines
participant eligibility, examines landlord lease and/or"rules of occupancy" to
make certain that there are no requirements that prohibit or run counter to HUD
requirements, executes tenant housing contract for rental assistance, and
reexamines client eligibility and inspects property for Housing Quality Standards
annually.
Supportive services are provided by Community Alliance. These services are
critical to ensuring that this population remains permanently housed. Services
may include health care, mental health treatment, alcohol and other substance
abuse services, case management services, counseling, supervision,
education,job training and other services essential for achieving and
maintaining whatever degree of independent living is possible for the
participant.
The project participated in a Coordinated Assessment pilot project and will also
participate in the next phase, but the Coordinated Assessment system is not
currently operational in our continuum.
1 b. Provide changes, if required, to the description that addresses the
entire scope of the proposed project.
Applicant Renewal Issues and Conditions Page 23 07/31/2015
Applicant: City of Omaha NE0039C7D011001
Project: City of Omaha NE0039L7D011405
This project provides twenty-two units of permanent supportive housing for
chronically homeless individuals with severe mental illness. In many cases,
participants suffer from substance abuse as well as severe mental illness.
The City of Omaha is the project applicant and subcontracts with the Omaha
Housing Authority (OHA) to administer the program. OHA screens participants
for eligibility (documenting homelessness and disability), issues rental
assistance vouchers in the appropriate amount contingent on the securing of
housing that is affordable and meets Housing Quality Standards, determines
"rent reasonableness" of prospective housing, inspects and maintains
documentation that housing meets Housing Quality Standards, determines
participant eligibility, examines landlord lease and/or"rules of occupancy" to
make certain that there are no requirements that prohibit or run counter to HUD
requirements, executes tenant housing contract for rental assistance, and
reexamines client eligibility and inspects property for Housing Quality Standards
annually.
Supportive services are provided by Community Alliance. These services are
critical to ensuring that this population remains permanently housed. Services
may include health care, mental health treatment, alcohol and other substance
abuse services, case management services, counseling, supervision,
education,job training and other services essential for achieving and
maintaining whatever degree of independent living is possible for the
participant.
The project participated in a Coordinated Assessment pilot project and will also
participate in the next phase, but the Coordinated Assessment system is not
currently operational in our continuum.
2. Does your project participate in a CoC No
Coordinated Assessment System?
3. Does your project have a specific Yes
population focus?
3a. Please identify the specific population focus. (Select ALL that apply)
Chronic Homeless Domestic Violence
X
Veterans Substance Abuse
X
Youth(under 25) Mental Illness
X
Families HIV/AIDS
Other
(Click'Save'to update)
Other:
Applicant Renewal Issues and Conditions Page 24 07/31/2015
Applicant: City of Omaha NE0039C7D011001
Project: City of Omaha NE0039L7D011405
5. Does the project follow a "Housing First" Yes
model?
Renewal HUD Adjustment
Project Award
Application
6.Does the PH project provide PSit V;as 01 bra SH '€ €b PSH
PSH or RRH?
Renewal HUD Adjustment
Project Award
Application
6a.Maximum length of rental Unlimited ssi a l � v' Unlimited assistance
,3�
assistance(PH 1 PSH): 4 n` t € i N a.«. . t.,a er, .*i ; a ;€ e a;fik ,P'
7a. Does the project request costs under the Yes
rental assistance budget line item?
7b. Describe the method for determining the type, amount, and duration of
rental assistance that participants can receive.
Type: Tenant-based rental assistance; Amount: Up to the fair market rent;
Duration: One year leases renewed based on need (clients are chronically
homeless mentally-ill, often with substance abuse problems and are, as a
consequence, long term program participants, in general.
7c. Is this a CoC Program leasing or former No
SHP project that had been approved by HUD
to revise the renewal project budget from
leasing to rental assistance?
(This change must have been listed on the
final HUD-approved GIW. See 24 CFR
578.49(b)(8))
Applicant Renewal Issues and Conditions Page 25 07/31/2015
Applicant: City of Omaha NE0039C7D011001
Project: City of Omaha NE0039L7D011405
4A. Supportive Services for Participants
Instructions:
Applicant Renewal Issues and Conditions Page 26 07/31/2015
Applicant: City of Omaha NE0039C7D011001
Project: City of Omaha NE0039L7D011405
All fields on this screen will populate with information from the project application.These fields
can be adjusted.
Are the proposed project policies and practices consistent with the laws related to providing
education services to individuals and families: This is a required field. Select"Yes,""No,"or
"N/A"to indicate whether the project policies provide for educational and related services to
individuals and families experiencing homelessness,and if the policies are consistent with local
and federal educational laws, including the McKinney-Vento Act. Only projects that do not serve
families with children or unaccompanied youth should select"N/A." If"No"is selected,the
project applicant will be required to answer an additional question.
Does the proposed project have a designated staff person to ensure that children are enrolled
in school and receive educational services, as appropriate:This is a required field. Select"Yes,"
"No,"or"N/A"to indicate whether the project has a designated staff person responsible for
ensuring that children and youth are enrolled in school and connected to the appropriate
services within the community, including early childhood education programs such as Head
Start, Part C of the Individuals with Disabilities Education Act, and McKinney-Vento education
services. Only projects that do not serve families with children or unaccompanied youth should
select"N/A." If"No"is selected,the project applicant will be required to answer an additional
question.
Describe the manner in which the project applicant will take into account the educational needs
of children when youth and/or families are placed in housing:This is a required field if a
response of"No"is given for either one of the two preceding questions. Use this space to
explain how the project will plan to meet the educational needs of children and youth participants
according to the requirements specified under r ction 426.B.4 of the McKinney-Vento Act as
amended by HEARTH.
Describe how participants will be assisted to obtain and remain in permanent housing: This is a
required field. Describe how the project applicant will assist project participants to obtain and
remain in permanent housing.The response should address how the applicant will take into
consideration the needs of the target population and the barriers that are currently preventing
them from obtaining and maintaining permanent housing.The applicant should describe how
those needs and barriers how those will be addressed through the case management and/or
other supportive services that will be offered through the project. If participants will be housed in
units not owned by the project applicant,the narrative must also indicate how appropriate units
will be identified and how the project applicant or subrecipient will ensure that rents are
reasonable. Established arrangements and coordination with landlords and other homeless
services providers should be detailed in the narrative.
Describe specifically how participants will be assisted both to increase their employment
and/or income and to maximize their ability to live independently:This is a required field.
Describe the supportive services that will be provided to help project participants locate
employment and access mainstream resources so that they are more likely to be able to live
independently.
For all supportive services available to participants, indicate who will provide them, how they
will be accessed, and how often they are provided. This field is required and at least one value
must be entered. Complete each row of drop down menus for supportive services that will be
available to participants, using the funds requested through the application, and funds from other
sources. If more than one Provider or mode of Access is relevant for a single service, please
select the provider and mode of access that corresponds to the highest frequency.
-Provider: select one of the following: "Applicant"to indicate that the applicant will provide the
service directly; "Subrecipient"to indicate that a subrecipient will provide the service directly;
"Partner"to indicate that an organization that is not a subrecipient of project funds but with whom
a formal agreement or MOU has been signed will provide the service directly;or, "Non-Partner"
to indicate that a specific organization with whom no formal agreement has been established
regularly provides the service to clients. If more than one provider offers the service at the same
frequency, choose the provider according to the following: Applicant,then Subrecipient,then
Partner,and lastly, non-Partner.
-Access: Select the most common method of access for participants. If more than one mode is
equally common, choose the most convenient.
Applicant Renewal Issues and Conditions Page 27 07/31/2015
Applicant: City of Omaha NE0039C7D011001
Project: City of Omaha NE0039L7D011405
- Frequency: Select the most common interval of time for which the service is accessible to
participants. If two frequencies are equally common, choose the interval with the highest
frequency.
Applicants may leave dropdown menus as"—select—"when services are not applicable.
To what extent are most community amenities available to project participants:This field is
required. Select the answer that best fits the accessibility of community amenities such as:
Schools, libraries, houses of worship, grocery stores, laundromats, doctors, dentists, parks or
recreation facilities. If accessibility varies significantly by amenity, choose the level that best
describes most of the amenities or the average accessibility of amenities.
Additional Resources:
https://www.h udexchange.info/e-snaps/guides/coc-program-com petition-resources/
la. Are the proposed project policies and Not Applicable
practices consistent with the laws related to
providing education services to individuals
and families?
lb. Does the proposed project have a Not Applicable
designated staff person to ensure that the
children are enrolled in school and receive
educational services, as appropriate?
2. For all supportive services available to participants, indicate who will
provide them, how they will be accessed, and how often they will be
provided.
Click 'Save'to update.
Supportive Services Provider Access Frequency
Assessment of Service Needs Partner Program van As needed
Assistance with Moving Costs Partner Program van As needed
Case Management Partner Public/private regional Monthly
transportation
Child Care Partner Public/private regional As needed
transportation
Education Services Partner Public/private regional As needed
transportation
Employment Assistance and Job Partner Public/private regional As needed
Training transportation
Food Partner Public/private regional As needed
transportation
Housing Search and Counseling Partner Program van As needed
Services
Legal Services Partner Program van As needed
Life Skills Training Partner Public/private regional Monthly
transportation
Mental Health Services Partner Public/private regional Monthly
transportation
Outpatient Health Services Partner Public/private regional As needed
transportation
Outreach Services Partner Program van Weekly
Substance Abuse Treatment Partner Public/private regional As needed
Services transportation
Applicant Renewal Issues and Conditions Page 28 07/31/2015
Applicant: City of Omaha NE0039C7D011001
Project: City of Omaha NE0039L7D011405
Transportation Partner Publicprivate regional As needed
transportation
Utility Deposits Partner Program van As needed
3. How accessible are most community amenities to project participants?
Most Community Amenities Access
Schools,libraries,houses of worship,grocery Somewhat accessible:Minor transportation
stores,laundromats,doctors,dentists,parks barriers,requires effort for participants.
or recreation facilities.
Applicant Renewal Issues and Conditions Page 29 07/31/2015
Applicant: City of Omaha NE0039C7D011001
Project: City of Omaha NE0039L7D011405
4B. Housing Type and Location
The following list summarizes each housing site in the project. To add a
housing site to the list, select the icon. To view or update a housing site
already listed, select the icon.
Total Units: 22
Total Beds: 22
Total Dedicated CH Beds: 22
Total Non-Dedicated CH Beds: 0
".
3::. �.....kri?�i&rx.�.�'�,..`,,rz..ae..;l�:x.,xrY»f�SYxr+;., ,.^x:...�qx a1xi .� ..,....w..�2n �'P .. „ .�$�sF...:�s�:� .n�3,P.,r#�`._$.. .?.�.,"w„�''s#...rJ���'..w"�` '�aa,�zt..5&�AI'!a ....., _. .+..tia
Scattered-site apartments(... 22 22 22 0
Applicant Renewal Issues and Conditions Page 30 . 07/31/2015
Applicant: City of Omaha NE0039C7D011001
Project: City of Omaha NE0039L7D011405
4B. Housing Type and Location Detail
Instructions:
ALL PROJECTS EXCEPT HMIS
All fields on this screen will populate with information from the project application.These fields
can be adjusted.
A unique detail form should be completed for each structure. In the case of clustered
apartments, a single complex with multiple addresses may be entered on one detail form. In the
case of scattered-site apartments,all scattered-site units within a single FMR area may be
entered on one detail form.
Housing Type:This is a required field. Select the proposed Housing Type from the dropdown
menu.
Indicate the maximum number of units and beds available for project participants at the selected
housing site:This is a required field. Indicate the number of units and beds that will be served by
this project. The total cannot be less than number of units requested in the recipient's budget.
How many of the total beds entered in"b. Beds"are dedicated to the chronically homeless:This
is a required field. Based on the number of beds listed in the above question, how many, if any,
of the beds are dedicated for the chronically homeless."Dedicated"chronically homeless beds
can ONLY be used by chronically homeless persons. If none of the beds are dedicated for the
chronically homeless, enter"0."
How many of the total beds entered in "b. Beds"are not currently dedicated for the chronically
homeless but WILL be used to assist the chronically homeless when turnover occurs:This is a
required field. In this field, indicate the number of beds that are not dedicated to the chronically
homeless but where the chronically homeless WILL HAVE PRIORITY for admission when a bed
becomes available through turnover.
Address:This is a required field. Enter the physical address for this proposed project. For
Scattered-site housing, programs should enter the address where the majority of beds are
located or where most beds are located as of the application submission. For scattered-site
apartments or clustered apartments with different addresses, applicants may also choose to
enter an administrative address.
Select the geographic area(s)associated with the address:This is a required field. Select the
geographic location(s)of the selected Housing Type.
Additional Resources:
https://www.h udexchange.i nfo/e-snaps/guides/coc-program-competition-resources/
1. Housing Type: Scattered-site apartments (including efficiencies)
2. Indicate the maximum number of units and beds
available for project participants at the selected housing site.
a. Units: 22
Applicant Renewal Issues and Conditions Page 31 07/31/2015
Applicant: City of Omaha NE0039C7D011001
Project: City of Omaha NE0039L7D011405
b. Beds: 22
c. How many of the total beds entered in "b. 22
Beds" are dedicated to the chronically
homeless?
d. How many of the total beds entered in "b. 0
Beds" are not dedicated to the chronically
homeless but will still be used to assist the
chronically homeless?
•
3. Address:
Street 1:
Street 2:
City:
State: Nebraska
ZIP Code:
4. Select the geographic area(s) associated 319153 Sarpy County, 312208 OMAHA, 319055
with the address: Douglas County
(for multiple selections hold CTRL Key)
Applicant Renewal Issues and Conditions Page 32 07/31/2015
Applicant: City of Omaha NE0039C7D011001
Project: City of Omaha NE0039L7D011405
4C. HMIS Participation
Instructions:
ALL PROJECTS EXCEPT HMIS
All fields on this screen will populate with information from the project application. These fields
can be adjusted.
Does this project provide client level data to the HMIS at least annually: This is a required field.
Select"Yes"of"No"from the drop down menu.
If"No"was selected, indicate the reason for non-participation in the HMIS by selecting one or
more of the following reasons for not participating in the CoC's HMIS: Federal law prohibits,
State law prohibits, New project not yet operating,and other. If"Federal/State prohibition"cite
the applicable law in the text box provided. For"Other"provide an explanation in the text box.
"New project not yet operating,"is appropriate only for first time renewals that have yet to begin
operations.
If"Yes"was selected:
Indicate the number of clients served from 1/1/2013—12/31/2013: Enter the number of
participants reported in the HMIS, only positive integers will be accepted. This should be a
cumulative yearly count of clients served.
Of the clients served from 1/1/2013— 12/31/2013, indicate the number reported in the HMIS:
Enter a number that is smaller than or equal to the answer in the above question Only positive
integers will be accepted.
Indicate in the grid below the percentage of HMIS client records with 'null or missing values'or
'unknown values.'Please add a value for each cell below. If there are no values to report for a
cell, please enter"0:"At least one value must be entered into the grid. Enter a number in the
applicable fields that represents the percentage of each data element that have null or missing
values, and a number that represents the percentage of each data element were reported as
"Don't Know or Refused."
Additional Resources:
https://www.h udexchange.info/e-snaps/guides/coc-program-competition-resources/
1. Does this project provide client level Yes
data to HMIS at least annually?
Click on the "Save" button below to enter
additional information.
2a. Indicate the number of clients served 26
from 1/1/2011 - 12/31/2011
2b. Of the clients served from 1/1/2011 - 26
12/31/2011, indicate the number reported in
the HMIS
Applicant Renewal Issues and Conditions Page 33 07/31/2015
Applicant: City of Omaha NE0039C7D011001
Project: City of Omaha NE0039L7D011405
3. Indicate in the grid below the percentage of HMIS client records with
'null or missing values' or 'unknown values.' Please add a value for each
cell below. If there are no values to report for a cell, please enter "0".
Data Quality Null or Missing Don't Know or
Values(%) Refused(%)
Name 0% 0%
Social Security Number 0% 0%
Ethnicity 0% 0%
Race 0% 0%
Gender 0% 0%
Veteran Status 0% 0%
Disabling Condition 0% 0%
Residence Prior to Prog.Entry 0% 0%
Zip Code of Last Permanent Address 0% 0%
Applicant Renewal Issues and Conditions Page 34 07/31/2015
Applicant: City of Omaha NE0039C7D011001
Project: City of Omaha NE0039L7D011405
5A. Project Participants - Households
Instructions:
ALL PROJECTS EXCEPT HMIS
All fields on this screen will populate with the most current grant information. These fields can
be adjusted.
In each non-shaded field list the number of households or persons served at maximum
program capacity. The numbers here are intended to reflect a single point in time at maximum
occupancy and not the number served over the course of a year or grant term. Dark grey cells
are not applicable and light grey cells will be totaled automatically.
Households: Enter the number of households under at least one of the categories: Households
with at least One Adult and One Child,Adult Households without Children, or Households with
Only Children.
-Households with at least One Adult and One Child: Enter the total number of households with
at least one adult and one child. To fall under this column and household type,there must be at
least one person at or above the age of 18, and at least one person under the age of 18.
Adult Households without Children: Enter the total number of adult households without children.
To fall under this column and household type,there must be at least one person at or above the
age of 18, and no persons under the age of 18.
- Households with Only Children: Enter the total number of households with only children. To
fall under this column and household type,there may not be any persons at or above the age of
18, and only persons under the age of 18.
Characteristics: Enter the total number of homeless that fall under one of the characteristics
listed.
-Persons in Households with at least One Adult and One Child: Enter the number of persons in
households with at least one adult and on child for each demographic row. To fall under this
column and household type,there must be at least one person at or above the age of 18, and at
least one person under the age of 18.
-Adult Persons in Households without Children: Enter the number of persons in households
without children for each demographic row. To fall under this column and household type,there
must be at least one person at or above the age of 18,and no persons under the age of 18.
- Persons in Households with Only Children: Enter the number of persons in households with
only children for each demographic row. To fall under this column and household type,there
may not be any persons at or above the age of 18, and only persons under the age of 18.
Totals:All fields in the"Total Number..."and "Total Persons"rows will automatically calculate
when the"Save"button is clicked.
Additional Resources:
https:/lwww.hudexchange.info/e-snaps/guides/coc-program-competition-resources/
Households Households with at Adult Households Households with Total
Least One Adult without Children Only Children
and One Child
Total Number of Households 0 22 0 } N,44LtA �
S
Characteristics Persons in Adult Persons in Persons in Total
Households with at Households without Households with
Least One Adult Children Only Children
and One Child
Applicant Renewal Issues and Conditions Page 35 07/31/2015
Applicant: City of Omaha NE0039C7D011001
Project: City of Omaha NE0039L7D011405
Disabled Adults over age 24 0 22 iii " ',,:, ,
IOW-a r - _ s
Non-disabled Adults over age 24 0 0 _ 1
Disabled Adults ages 18-24 0 0 , Vg
;k � s
Non-disabled Adults ages 18-24 0 0 " gP
Accompanied Disabled Children under age 0 0 M M0 0i. >
18 e �� �
Accompanied Non-disabled Children under 0 0 � v-� a � ;age 18
Unaccompanied Disabled Children under 0 s, , bm ai ,
ager
lLaggefitTfifilli
Unaccompanied Non-disabled Children 0
under age 18
p £?
° !. � ;: tame"
" '' ` 4fs
` *, Fr a Wg-' ry 1 m .. _
;1� � wi m kttAi 11em
E¢5+ zeal r` l § iV
Click Save to automatically calculate totals
Applicant Renewal Issues and Conditions Page 36 07/31/2015
Applicant: City of Omaha NE0039C7D011001
Project: City of Omaha NE0039L7D011405
5B. Project Participants - Subpopulations
Instructions:
ALL PROJECTS EXCEPT HMIS
All fields on this screen will populate with information from the project application. These fields
can be adjusted.
In each non-shaded field enter the number of persons served at maximum program capacity
according to their age group,disability status, and the extent in which persons served fit into one
or more of the subpopulation categories. The numbers here are intended to reflect a single point
in time at maximum capacity and not the number served over the course of a year or grant term.
Dark grey cells are not applicable and light grey cells will be totaled automatically.
Complete each of the three charts on the form according to household types.
Persons in Households with at Least One Adult and One Child chart: Enter only persons in
households with at least one adult and one child. To be listed on this chart,a person must be
part of a household with at least one person at or above the age of 18, and at least one person
under the age of 18.
Persons in Households without Children chart: Enter only persons in adult households without
children. To be listed on this chart, a person must be part of a household with at least one
person at or above the age of 18, and no persons under the age of 18.
Persons in Households with Only Children chart: Enter only persons in households with only
children. To be listed on this chart, a person must be part of a household with no persons at or
above the age of 18, and only persons under the age of 18.
Total Persons: All fields in the"Total Persons"rows will calculate automatically when the
"Save"button is clicked.
Describe the unlisted subpopulations referred to above: This field is visible and mandatory if a
number greater than 0 is entered into the column"Persons not represented by listed
subpopulations." Enter text that describes the person(s)identified in this column and explains
how they do not fall under the other categories in columns 1 through 9.
Additional Resources:
https://www.h udexchange.i nfo/e-snaps/guides/coc-program-competition-resources/
Persons in Households with at Least One Adult and One Child
-
Disabled Adults over age 24
Non-disabled Adults over age 24
Disabled Adults ages 18-24
Non-disabled Adults ages 18-24
Disabled Children under age 18
Non-disabled Children under age 18
3 4 - dl
3.�
Applicant Renewal Issues and Conditions Page 37 07/31/2015
Applicant: City of Omaha NE0039C7D011001
Project: City of Omaha NE0039L7D011405
Persons in Households without Children
° ;..,:;;..1$ ' .`v A S
S ° ''S-'1 S. A & k ' '' ' ', �� � - ` fi r
.- ' ' ' $ yY � S
E
b'�.......... .. . .. ... .....c. ' ... -
Disabled Adults over age 24 21 1 0 21 1 22 7 5 0 0
Non-disabled Adults over age 24 0 0 0 0 0 0 0 0 0 0
Disabled Adults ages 18-24 0 0 0 0 0 0 0 0 0 0
Non-disabled Adults ages 18-24 0 0 0 0 0 0 0 0 0 0
kV( 10 - ;„ zz °^�^'F E' °a44,11 f'gt, �{ TiP a^t ilf 3r �.
�::a.a� � s_ ? . ��.� 2 s..i�a.�,a„t���z, W ,,�za.,.°P>.r� I�e�..-�,�� �.... .€�. �� t,r_O , a?� �,,
Click Save to automatically calculate totals
Persons in Households with Only Children
s41,
a S..fir.
., . ` ? �"zr bl( ELF z'Ta`p'Au
Accompanied Disabled Children under -------
age 18
Accompanied Non-disabled Children -. -------
under age 18
Unaccompanied Disabled Children under- -------
age 18
Unaccompanied Non-disabled Children -------
under age 18
.. >,.;,..�.,.-�aG -:x� �:.e:a �,. � ,::.<:.�.t�,6� :� �,,3 �s�# �,c.a�ua�,�tag; .�3., � ad,�.�,.`�v�F;tf
Applicant Renewal Issues and Conditions Page 38 07/31/2015
Applicant: City of Omaha NE0039C7D011001
Project: City of Omaha NE0039L7D011405
5C. Outreach for Participants
Instructions:
Applicant Renewal Issues and Conditions Page 39 07/31/2015
Applicant: City of Omaha NE0039C7D011001
Project: City of Omaha NE0039L7D011405
ALL PROJECTS EXCEPT HMIS
All fields on this screen will populate with information from the project application. These fields
can be adjusted.
Enter the percentage of project participants that will be coming from each of the following
locations: This is a required field. Enter the percentage (between 0%and 100%)of participants
that will be coming from each of the following locations:
- Directly from the street or other locations not meant for human habitation
- Directly from emergency shelters
-Directly from safe havens
- From transitional housing and previously resided in a place not meant for human habitation or
emergency shelters,or safe havens
-Persons at imminent risk of losing their night time residence within 14 days, have no
subsequent housing identified, and lack the resources to obtain other housing(only applicable to
TH and SSO projects)
-Homeless persons as defined under other federal statutes(TH and SSO only and HUD
approval REQUIRED)
-Persons fleeing domestic violence
* If the project has entered a value into the row"Homeless persons as defined..."that value has
been set to zero as no projects have been approved to serve persons coming from these
locations.
** If the project is not a TH or SSO project and has entered a value into the row"Persons at
imminent risk..."that value has been set to zero as no other project type may serve persons
from these locations.
Total of above percentages:The percentages entered will automatically sum when all required
fields are entered and the "Save"button is clicked. A warning message will appear if the total is
greater than 100%.
If the total is less than 100 percent, identify how the persons meet HUD's definition of homeless
and the project type eligibility requirements.
AND/OR
If"Persons at imminent risk..."is greater than 0 percent, identify the project as either an SSO or
TH project and verify that persons served will be within 14 days of losing their housing and
becoming literally homeless: This field is required if the total percentage calculated above is less
than 100 percent or if a number greater than 0 was entered in the"Persons at imminent risk of
losing their nighttime residence"field. If both apply,the project applicant must provide a
response to both questions in this field.
If the total percentage calculated above is less than 100 percent, explain where the
unaccounted for participants will come from. All participants served in CoC Program funded
projects must meet eligibility criteria set forth in 24 CFR Part 578,the FY 2014 Funding Notice,
and the FY 2013—FY 2014 CoC Program NOFA.
If the field for"Persons at imminent risk of losing their nighttime residence within 14 days, have
no subsequent housing identified, and lack the resources to obtain other housing"contains a
percentage greater than 0,the project applicant must indicate how these persons meet the
eligibility criteria for the project component being requested (may only be TH or SSO).
Additional Resources:
https:llwww.hudexchange.i nfo/e-snaps/guides/coc-program-competition-resources/
Applicant Renewal Issues and Conditions Page 40 07/31/2015
Applicant: City of Omaha NE0039C7D011001
Project: City of Omaha NE0039L7D011405
1. Enter the percentage of homeless person(s) who will be served by the
proposed project for each of the following locations.
10% Directly from the street or other locations not meant for human habitation.
90% Directly from emergency shelters.
Directly from safe havens.
From transitional housing and previously resided In a place not meant for human habitation or emergency shelters,
or safe havens.
E 7 11, t . Persons at imminent risk of losing their night time residence within 14 days,have no subsequent housing identified,
" i�' ^and lack the resources to obtain other housing(TH and SSO projects only)
Persons fleeing domestic violence.
1004e 4 i1 Y iS Total of above percentages
2. If the total is less than 100 percent, identify how the persons meet
HUD's definition of homeless and the project type eligibility requirements
AND/OR
If"Persons at imminent risk..." is greater than 0 percent, identify the
project as either an SSO or TH project and verify that persons served will
be within 14 days of losing their housing and becoming literally homeless.
Applicant Renewal Issues and Conditions Page 41 07/31/2015
Applicant: City of Omaha NE0039C7D011001
Project: City of Omaha NE0039L7D011405
6A. Standard Performance Measures
Instructions:
ALL PROJECTS EXCEPT SSO and HMIS
All fields on this screen will populate with information from the project application.These fields
can be adjusted.
Housing Measures:This is a required field. Persons remaining in permanent housing as of the
end of the operating year or exiting to permanent housing (subsidized or unsubsidized)during
the operating year: Count each participant who is still living in your units supported by your
facility(if permanent housing),or clients who have exited your units/project and moved into
another permanent housing situation
Income Measure:This is a required field where at least one option must be chosen by the
project applicant.
a)Persons age 18 and older who maintained or increased their total income (from all
sources)as of the end of the operating year or program exit: Not applicable for youth below the
age of 18. Total income can include all sources, public and private.
b)Persons age 18 through 61 who maintained or increased their earned income as of the
end of the operating year or program exit: Not applicable for youth below the age of 18. Earned
income should only include income from wages and private investments, and not public benefits.
For each measure, enter a number in the blank cells according to the following instructions:
Universe(#): Enter the total number of persons about whom the measure is expected to be
reported. The Universe is the total pool of persons that could be affected.
Target(#): Enter the number of applicable clients from the universe who are expected to
achieve the measure within the operating year.The Target is the total number of persons from
the pool that are affected.
Target(%):This field will be calculated automatically when all required fields are entered and
saved. For example, if 80 out of 100 clients are expected to remain in the permanent housing
program or exit to other permanent housing,the target%should be"80%."
Additional Resources:
https://www.hudexchange.info/e-snaps/g uides/coc-program-competition-resources/
1. Specify the universe and target for the housing measure.
Click 'Save' to calculate the target percent (%).
Housing Measure Target(#) Universe(#) Target(%)
a.Persons remaining in permanent housing as of the end of the 20 22 ` Wi VICE
operating year or exiting to permanent housing(subsidized or '
unsubsidized)during the operating year. kraa v 4.
Applicant Renewal Issues and Conditions Page 42 07/31/2015
Applicant: City of Omaha NE0039C7D011001
Project: City of Omaha NE0039L7D011405
2. Choose one income-related performance measure from below, and
specify the universe and target numbers for the goal.
Click 'Save'to calculate the target percent (%).
Income Measure Target(#) Universe(#) Target(%)
a.Persons age 18 and older who maintained or increased their 18 22 at',
total income ..,�
(from all sources)as of the end of the operating year or
program exit 'MvW:li
OR
b.Persons age 18 through 61 who maintained or Increased their li t'�'° a € :4
earned income
����3� �
as of the end of the operating ;i R � I 0
year or program exit.
Applicant Renewal Issues and Conditions Page 43 07/31/2015
Applicant: City of Omaha NE0039C7D011001
Project: City of Omaha NE0039L7D011405
6B. Additional Performance Measures
Specify up to three additional measures on which the project will report
performance in the Annual Performance Report (APR).
This list contains no items
Applicant Renewal Issues and Conditions Page 44 07/31/2015
Applicant: City of Omaha NE0039C7D011001
Project: City of Omaha NE0039L7D011405
7A. Funding Request
Instructions:
For some fields on this screen data can only be entered under the Adjustment column. Data
under the New Submission column populates from the project application. Data under the HUD
Award column populates from the HUD conditional award. Questions with only one field and no
columns can be adjusted directly.
Do any of the properties in this project have an active restrictive covenant?Select"Yes"of"No"
to indicate whether one or more of the project properties are subject to an active restrictive
covenant.
Was the project awarded as either a Samaritan Bonus or Permanent Housing Bonus project?
Select"Reallocation"if the project was created through the use of funds reallocated from one or
more eligible renewal projects. Select"Permanent Housing Bonus"if this project was awarded
using permanent housing bonus funds.
Are the requested renewal funds reduced from the previous award as a result of reallocation?
Select"Yes"or"No"to indicate whether the renewal project is reduced through the reallocation
process. The response will be compared to the CoC Reallocation forms.
Does this project propose to allocate funds according to an indirect cost rate? Select"Yes"or
"No"to indicate whether the project either has an approved indirect cost plan in place or will
propose an indirect cost plan by the time of conditional award. For more information concerning
indirect costs plans, please consult OMB circulars A-122 and A-87 and contact your local HUD
office.
3. Select a grant term:This field cannot be edited.
4. Select the costs for which funding is being requested:This field should only be adjusted
when HUD has either removed or created a new budget line item for the project during its review
of the project application. Review the budget summary for information concerning the HUD
conditional award and then select or deselect budget line items from this chart only if necessary.
There are three columns with check boxes.The"New Submission"column is for reference
only and represents the budget costs selected by the recipient on the new grant application.The
check boxes in this column cannot be edited.The"HUD Award"column is for reference only and
represents the budget costs awarded by HUD.The check boxes in this column cannot be edited.
The"Adjustment"column represents the amendment request. These check boxes are available
for edit. Depending on the project type,the following eligible costs may be listed: new
construction/acquisition/rehabilitation, leased units, leased structures, rental assistance,
supportive services, operating,and HMIS.
Additional Resources:
https://www.hudexchange.info/e-snaps/gu ides/coc-program-competition-resources/
1. Is there an active restrictive covenant on No
one or more of the project properties?
2. Was the original project awarded as either No
a Samaritan Bonus or Permanent Housing
Bonus project?
Applicant Renewal Issues and Conditions Page 45 07/31/2015
Applicant: City of Omaha NE0039C7D011001
Project: City of Omaha NE0039L7D011405
3. Are the requested renewal funds reduced No
from the previous award as a result of
reallocation?
Renewal HUD Award Adjustment
Submission
-e S tx c7€ #� a ax,' �-:4 t #2 tg e E `4# .t 3 zs
4.Will this project propose to ilii i ,# g i tai .1 itieke r r No
allocate funds according to an a & E ii� - t: t v�I
Indirect cost rate? xM4'&- iatti � a 744W: 7... e,Rte�e' 4,10.;t CxZ 'v. t,:
5. Select a grant term: 1 Year
6. Budget line items for which funding has been requested.
Renewal HUD Adjustment
Submission Award
Leased Units rVEN ' a k 8 i,' ' $,- ''
Leased Structures �'/ �� ' a1� /Mr:e M,oho- �$ i 11
Rental Assistance a we.,fir r- , 3 �t
Supportive Services _ 44��4- i �v t. i` t
.14
Operations 1t -a e lOM 4 e s k
HMIS
,a3, .ice .,_.d,�r�ln.w�
Applicant Renewal Issues and Conditions Page 46 07/31/2015
Applicant: City of Omaha NE0039C7D011001
Project: City of Omaha NE0039L7D011405
7D. Rental Assistance Budget
The following list summarizes the rental assistance funding request for the
total term of the project. To add information to the list, select the icon. To
view or update information already listed, select the icon.
Renewal Submission HUD Award Adjustment
Total Annual Assistance Request: r a ' ` ,n
Grant Term: YY ,
Total Request for Grant Term:
Total Units ;
! e a a a
TRA IRA IRA IA-Omaha- IA-Omaha- 22 $169,488
Counci... Counci...
Applicant Renewal Issues and Conditions Page 47 07/31/2015
Applicant: City of Omaha NE0039C7D011001
Project: City of Omaha NE0039L7D011405
Rental Assistance Budget Detail
Instructions:
Data can only be entered under the Adjustment column. Data under the New Submission
column populates from the project application. Data under the HUD Award column populates
from the HUD conditional award.The total amount for this budget line item cannot be adjusted
during the resolution of issues and conditions.
Type of Rental Assistance: This is the only field that can be edited on this screen. Select the
applicable type of rental assistance from the dropdown menu. Options include tenant-based
(TRA), sponsor-based (SRA), and project-based assistance(PRA). Each type has unique
requirements and applicants should refer to the 24 CFR 578.51 before making a selection.
Additional Resources:
https://www.hudexchange.info/e-snaps/guides/coc-program-competition-resources/
Type of Rental Assistance: TRA
Applicant
Rental Assistance Type TRA
Adjustment
FMR Area
Applicant Renewal Submissionde fi* � �1M � f ; - E•
HUD Award
Adjustment IA-Omaha-Council Bluffs,NE-IA HUD Metro FMR Area(1908599999)
No
Does the applicant request rental assistance
funding for less than the area's per unit size
fair market rents?
Applicant
No
Does the applicant request rental assistance
funding for less than the area's per unit size
fair market rents?
HUD Award
No
Does the applicant request rental assistance
funding for less than the area's per unit size
fair market rents?
Adjustment
Applicant Renewal Issues and Conditions Page 48 07/31/2015
•
Applicant: City of Omaha NE0039C7D011001
Project: City of Omaha NE0039L7D011405
Size of Units #of #of #of FMR FMR FMR HUD HUD HUD 12 Total Adjusted Total
Units Units Units Area Area Area Paid Paid Paid Mont Request Total Request
(Rene (HUD (Adju (Rene (HUD (Adju Rent Rent Rent Mhos
(Renewal Assistant (Adjustme
wal Awar stme wal Awar stme (Appli (HUD (Adju Submissi e nt)
Subm d) nt) Subm d) nt) cant) Awar stme on) Requeste
issio issio d) nt) d
n) n) (HUD
Award)
SRO ? 8 � J1 �" 4 MN tdi�� ,. 3 ,, '»` �t iv° a
0 Bedroom '. i 'Imo, 0 r i ,� e ( ; -- �F �:}
Stu ✓` s e 4 . -P ei. `^� 9i' �T6 a_-
1 Bedroom �2 22 ` ) 1 e 4` 8;3 6
2 Bedrooms d 0 k a, 0 s'', ' l. i § .� { * `i c ,.i. , $
3 Bedrooms I � �' 0 � � fl be - x�� = L ��,5 4,"' $0
4 Bedrooms ; �. 0 x4 i s x ® N l - .
5 BedroomsIt
Amt 0 > r ! "
irilValp , 3 : � M:
6 Bedrooms � �a 0 x} �E
7 Bedrooms t o »�� 0 a Via. «; �� a
8 Bedrooms �e ���� 0 2 r r �lir 1 i
a. r.ifikli
9 Bedrooms a n 0 74'`'� Y :7 a ,f $2 -r . f '�8" 0_.
i
Fez P.
ak-Ati,,Ito� � c
et 71;01,041r4ii*,
priggimmainitamTAtitgarl
opttigiansamhwilikilib
-r4 n ;ass .,..
Applicant Renewal Issues and Conditions Page 49 07/31/2015
Applicant: City of Omaha NE0039C7D011001
Project: City of Omaha NE0039L7D011405
7H. Sources of Match/Leverage
The following list summarizes the funds that will be used as Match or
Leverage for the project. To add a Matching/Leverage source to the list,
select the icon. To view or update a Matching/Leverage source already
listed, select the icon.
Summary for Match
Total Value of Cash Commitments: 0WO N M ' F' i �i �� ,, ,
x i ,Imo : a ,=
Total Value of In-Kind Commitments: k ;
Total Value of All Commitments: *ala � �� E' � �zr #s r 1'
Summary for Leverage
Total Value of Cash Commitments: m ' 0'4 ;4i ,, . as l' �� a ;d o f iP$
i.
Total Value of In-Kind Commitments: 3g @� titiu 3 '
Total Value of All Commitments: �i � g : 't sY-j�° Sil: csi �� )
tku tip i4,:ai EV ti�r� 5 "" 1 V ° . ^ ® . v>'
r 0 "71,4 4 a "ik'Ti Gill �,`ate^a`4 4,' ,€ m 7 g¢ i ,
€E,.,,,-'af, �Nii it, ��1 u s dhr4U,ggTi ��::iiit ir'%M:;:S � M s sue ,' .. , s
Match In-Kind Private Supportive 10/01/2014 $45,154
Servic...
Levera In-Kind Private Community 10/01/2014 $142,205
ge Allianc...
Levera In-Kind Private One World 09/30/2014 $18,000
ge Communi...
Levera In-Kind Private Open Door 09/29/2014 $2,520
ge Mission
Levera In-Kind Private Stephen Center, 10/01/2014 $6,000
ge Inc.
Applicant Renewal Issues and Conditions Page 50 07/31/2015
Applicant: City of Omaha NE0039C7D011001
Project: City of Omaha NE0039L7D011405
Sources of Match/Leverage Detail
Instructions:
All fields on this screen will populate with information from the project application.These fields
can be adjusted.
Match and Leverage are two distinct categories of funds from other sources that will be used in
conjunction with this project, if awarded. Match (cash or in-kind)must be used for eligible
program costs only and must be equal to or greater than 25%of the total grant request for all
eligible costs under the CoC Program interim rule with the exception of leasing costs. Leverage
funds can be used for any program related costs and there is no minimum requirement;
however,the determination of the CoC's leveraging score will be calculated using data from this
form. Please review 24 CFR Part 578,the FY 2014 Funding Notice, and the FY 2013—FY 2014
CoC Program NOFA for more detailed information concerning Match and Leverage.
Will this commitment be used towards Match or Leverage? Select Match or Leverage to
categorize each commitment being entered.
Type of Commitment: Select Cash ($)or In-kind (non-cash)to denote the type of contribution
that describes this match or leveraging commitment.
Type of source: Select Private or Government to denote the source of the contribution.The
Neighborhood Stabilization Program (NSP)and HUD-VASH(VA Supportive Housing program)
funds may be considered Government sources. Project applicants are encouraged to include
funds from these sources,whenever possible.A CoC may receive a higher leveraging score if
any of its project applicants identify NSP funds as a source of leverage for one or more projects.
Name the Source of the Commitment: Be as specific as possible(e.g. HHS PATH Grant,
Community Service Block Grant, Hilton Foundation Grant to End Chronic Homelessness)and
include the office or grant program as applicable. Enter the name of the entity providing the
contribution. It is important to provide as much detail as possible so that the local HUD office can
quickly identify and approve of the commitment source.
Date of written commitment: Enter the date of the written contribution.
Value of written commitment: Enter the total dollar value of the contribution.
The values entered on each detailed Match/Leverage form with populate the summary form.
The Cash, In-Kind, and Total Match will also automatically populate the Summary budget where
the 25%match minimum will be calculated and applied.
Additional Resources:
https://www.hudexchange.info/e-snaps/guides/coc-program-competition-resources/
1. Will this commitment be used towards Match
Match or Leverage?
2. Type of Commitment: In-Kind
3. Type of Source: Private
4. Name the Source of the Commitment: Supportive Services from Community Alliance
(Be as specific as possible and include the
office or grant program as applicable)
Applicant Renewal Issues and Conditions Page 51 07/31/2015
Applicant: City of Omaha NE0039C7D011001
Project: City of Omaha NE0039L7D011405
5. Date of Written Commitment: 10/01/2014
6. Value of Written Commitment: $45,154
Sources of Match/Leverage Detail
Instructions:
All fields on this screen will populate with information from the project application.These fields
can be adjusted.
Match and Leverage are two distinct categories of funds from other sources that will be used in
conjunction with this project, if awarded. Match (cash or in-kind)must be used for eligible
program costs only and must be equal to or greater than 25%of the total grant request for all
eligible costs under the CoC Program interim rule with the exception of leasing costs. Leverage
funds can be used for any program related costs and there is no minimum requirement;
however,the determination of the CoC's leveraging score will be calculated using data from this
form. Please review 24 CFR Part 578,the FY 2014 Funding Notice, and the FY 2013—FY 2014
CoC Program NOFA for more detailed information concerning Match and Leverage.
Will this commitment be used towards Match or Leverage? Select Match or Leverage to
categorize each commitment being entered.
Type of Commitment: Select Cash ($)or In-kind (non-cash)to denote the type of contribution
that describes this match or leveraging commitment.
Type of source: Select Private or Government to denote the source of the contribution.The
Neighborhood Stabilization Program (NSP)and HUD-VASH (VA Supportive Housing program)
funds may be considered Government sources. Project applicants are encouraged to include
funds from these sources,whenever possible. A CoC may receive a higher leveraging score if
any of its project applicants identify NSP funds as a source of leverage for one or more projects.
Name the Source of the Commitment: Be as specific as possible(e.g. HHS PATH Grant,
Community Service Block Grant, Hilton Foundation Grant to End Chronic Homelessness)and
include the office or grant program as applicable. Enter the name of the entity providing the
contribution. It is important to provide as much detail as possible so that the local HUD office can
quickly identify and approve of the commitment source.
Date of written commitment: Enter the date of the written contribution.
Value of written commitment: Enter the total dollar value of the contribution.
The values entered on each detailed Match/Leverage form with populate the summary form.
The Cash, In-Kind, and Total Match will also automatically populate the Summary budget where
the 25% match minimum will be calculated and applied.
Additional Resources:
https://www.hudexchange.info/e-snaps/guides/coc-program-com petition-resources/
1. Will this commitment be used towards Leverage
Match or Leverage?
2. Type of Commitment: In-Kind
Applicant Renewal Issues and Conditions Page 52 07/31/2015
Applicant: City of Omaha NE0039C7D011001
Project: City of Omaha NE0039L7D011405
3. Type of Source: Private
4. Name the Source of the Commitment: Community Alliance Supportive Services
(Be as specific as possible and include the
office or grant program as applicable)
5. Date of Written Commitment: 10/01/2014
6. Value of Written Commitment: $142,205
Sources of Match/Leverage Detail
Instructions:
All fields on this screen will populate with information from the project application.These fields
can be adjusted.
Match and Leverage are two distinct categories of funds from other sources that will be used in
conjunction with this project, if awarded. Match (cash or in-kind)must be used for eligible
program costs only and must be equal to or greater than 25% of the total grant request for all
eligible costs under the CoC Program interim rule with the exception of leasing costs. Leverage
funds can be used for any program related costs and there is no minimum requirement;
however,the determination of the CoC's leveraging score will be calculated using data from this
form. Please review 24 CFR Part 578,the FY 2014 Funding Notice,and the FY 2013—FY 2014
CoC Program NOFA for more detailed information concerning Match and Leverage.
Will this commitment be used towards Match or Leverage? Select Match or Leverage to
categorize each commitment being entered.
Type of Commitment: Select Cash($)or In-kind (non-cash)to denote the type of contribution
that describes this match or leveraging commitment.
Type of source: Select Private or Government to denote the source of the contribution.The
Neighborhood Stabilization Program (NSP)and HUD-VASH (VA Supportive Housing program)
funds may be considered Government sources. Project applicants are encouraged to include
funds from these sources,whenever possible.A CoC may receive a higher leveraging score if
any of its project applicants identify NSP funds as a source of leverage for one or more projects.
Name the Source of the Commitment: Be as specific as possible(e.g. HHS PATH Grant,
Community Service Block Grant, Hilton Foundation Grant to End Chronic Homelessness)and
include the office or grant program as applicable. Enter the name of the entity providing the
contribution. It is important to provide as much detail as possible so that the local HUD office can
quickly identify and approve of the commitment source.
Date of written commitment: Enter the date of the written contribution.
Value of written commitment: Enter the total dollar value of the contribution.
The values entered on each detailed Match/Leverage form with populate the summary form.
The Cash, In-Kind, and Total Match will also automatically populate the Summary budget where
the 25%match minimum will be calculated and applied.
Additional Resources:
https://www.hudexchange.info/e-snaps/guides/coc-program-competition-resources/
Applicant Renewal Issues and Conditions Page 53 07/31/2015
Applicant: City of Omaha NE0039C7D011001
Project: City of Omaha NE0039L7D011405
1. Will this commitment be used towards Leverage
Match or Leverage?
2. Type of Commitment: In-Kind
3. Type of Source: Private
4. Name the Source of the Commitment: One World Community Health Centers, Inc.
(Be as specific as possible and include the
office or grant program as applicable)
5. Date of Written Commitment: 09/30/2014
6. Value of Written Commitment: $18,000
Sources of Match/Leverage Detail
Instructions:
Applicant Renewal Issues and Conditions Page 54 07/31/2015
Applicant: City of Omaha NE0039C7D011001
Project: City of Omaha NE0039L7D011405
All fields on this screen will populate with information from the project application.These fields •
can be adjusted.
Match and Leverage are two distinct categories of funds from other sources that will be used in
conjunction with this project, if awarded. Match (cash or in-kind)must be used for eligible
program costs only and must be equal to or greater than 25% of the total grant request for all
eligible costs under the CoC Program interim rule with the exception of leasing costs. Leverage
funds can be used for any program related costs and there is no minimum requirement;
however,the determination of the CoC's leveraging score will be calculated using data from this
form. Please review 24 CFR Part 578,the FY 2014 Funding Notice,and the FY 2013—FY 2014
CoC Program NOFA for more detailed information concerning Match and Leverage.
Will this commitment be used towards Match or Leverage? Select Match or Leverage to
categorize each commitment being entered.
Type of Commitment: Select Cash ($)or In-kind (non-cash)to denote the type of contribution
that describes this match or leveraging commitment.
Type of source: Select Private or Government to denote the source of the contribution.The
Neighborhood Stabilization Program (NSP)and HUD-VASH(VA Supportive Housing program)
funds may be considered Government sources. Project applicants are encouraged to include
funds from these sources,whenever possible. A CoC may receive a higher leveraging score if
any of its project applicants identify NSP funds as a source of leverage for one or more projects.
Name the Source of the Commitment: Be as specific as possible(e.g. HHS PATH Grant,
Community Service Block Grant, Hilton Foundation Grant to End Chronic Homelessness)and
include the office or grant program as applicable. Enter the name of the entity providing the
contribution. It is important to provide as much detail as possible so that the local HUD office can
quickly identify and approve of the commitment source.
Date of written commitment: Enter the date of the written contribution.
Value of written commitment: Enter the total dollar value of the contribution.
The values entered on each detailed Match/Leverage form with populate the summary form.
The Cash, In-Kind, and Total Match will also automatically populate the Summary budget where
the 25% match minimum will be calculated and applied.
Additional Resources:
https://www.h udexchange.info/e-snaps/guides/coc-program-competition-resources/
1. Will this commitment be used towards Leverage
Match or Leverage?
2. Type of Commitment: In-Kind
3. Type of Source: Private
4. Name the Source of the Commitment: Open Door Mission
(Be as specific as possible and include the
office or grant program as applicable)
5. Date of Written Commitment: 09/29/2014
6. Value of Written Commitment: $2,520
Sources of Match/Leverage Detail
Applicant Renewal Issues and Conditions Page 55 07/31/2015
Applicant: City of Omaha NE0039C7D011001
Project: City of Omaha NE0039L7D011405
Instructions:
All fields on this screen will populate with information from the project application.These fields
can be adjusted.
Match and Leverage are two distinct categories of funds from other sources that will be used in
conjunction with this project, if awarded. Match (cash or in-kind)must be used for eligible
program costs only and must be equal to or greater than 25%of the total grant request for all
eligible costs under the CoC Program interim rule with the exception of leasing costs. Leverage
funds can be used for any program related costs and there is no minimum requirement;
however,the determination of the CoC's leveraging score will be calculated using data from this
form. Please review 24 CFR Part 578,the FY 2014 Funding Notice,and the FY 2013—FY 2014
CoC Program NOFA for more detailed information concerning Match and Leverage.
Will this commitment be used towards Match or Leverage?Select Match or Leverage to
categorize each commitment being entered.
Type of Commitment: Select Cash ($)or In-kind (non-cash)to denote the type of contribution
that describes this match or leveraging commitment.
Type of source: Select Private or Government to denote the source of the contribution.The
Neighborhood Stabilization Program (NSP)and HUD-VASH (VA Supportive Housing program)
funds may be considered Government sources. Project applicants are encouraged to include
funds from these sources,whenever possible.A CoC may receive a higher leveraging score if
any of its project applicants identify NSP funds as a source of leverage for one or more projects.
Name the Source of the Commitment: Be as specific as possible (e.g. HHS PATH Grant,
Community Service Block Grant, Hilton Foundation Grant to End Chronic Homelessness)and
include the office or grant program as applicable. Enter the name of the entity providing the
contribution. It is important to provide as much detail as possible so that the local HUD office can
quickly identify and approve of the commitment source.
Date of written commitment: Enter the date of the written contribution.
Value of written commitment: Enter the total dollar value of the contribution.
The values entered on each detailed Match/Leverage form with populate the summary form.
The Cash, In-Kind, and Total Match will also automatically populate the Summary budget where
the 25%match minimum will be calculated and applied.
Additional Resources:
https://www.hudexchange.info/e-snaps/guides/coc-program-competition-resources/
1. Will this commitment be used towards Leverage
Match or Leverage?
2. Type of Commitment: In-Kind
3. Type of Source: Private
4. Name the Source of the Commitment: Stephen Center, Inc.
(Be as specific as possible and include the
office or grant program as applicable)
5. Date of Written Commitment: 10/01/2014
6. Value of Written Commitment: $6,000
Applicant Renewal Issues and Conditions Page 56 07/31/2015
Applicant: City of Omaha NE0039C7D011001
Project: City of Omaha NE0039L7D011405
71. Summary Budget
Instructions:
Data can only be entered under the Adjustment column. Data under the Renewal Submission
column populates from the project application. Data under the HUD Award column populates
from the HUD conditional award.The total requested amount for this summary budget cannot be
adjusted during the resolution of issues and conditions.
The system populates a summary budget based on the information entered into each
preceding budget screen. Review the data in each preceding screen and, if necessary, in both
the HUD Conditional Award Summary and the Project Application accessed through the
"Reference Submissions", and return to the screens to correct any inaccurate information. All
fields are read only with exception to field "8.Admin (Up to 10%)."
Admin (Up to 10%): This value cannot be increased above the amount that appears under the
HUD Award column. It can however be reduced. The grant will not fund greater than 10%of the
request listed in the field "Sub-Total Eligible Costs Request." Additionally, HUD will not fund
greater than 7%of the request listed in the field,"Sub-Total Eligible Costs Requested,"if the
CoC received bonus points in the FY 2013 CoC Program competition for submitting all CoC
projects at or below 7%. If an amount above 10%is entered,the system will report an error and
prevent application submission when the screen is saved.
Total Assistance plus Admin Requested: This field is automatically populated based on the
amount of funds requested on the various budgets completed by the project applicant and
Admin costs requested. This is this is the total amount of funding the project applicant will
request in the FY 2013 CoC Program Competition. Cash Match:This field is automatically
populated based on the amount of Cash Match entered on Screen 7H. Sources of
Match/Leverage.
In-Kind Match:This field is automatically populated based on the amount of In-Kind Match
entered on Screen 7H. Sources of Match/Leverage.
Total Match:This field will automatically calculate the total combined value of the Cash and In-
Kind Match. The total match must equal 25%of the request listed in the field "Total Eligible
Costs Request"minus the amount requested for Leased Units and Leased Structures. There is
no upper limit for Match. If an ineligible amount is entered,the system will report an error and
prevent application submission. To correct an inadequate level of match, return to Screen"7H.
Sources of Match/Leverage"to make changes.
The Total Budget automatically calculates when you click the"Save" button.
Additional Resources:
https://www.h udexchange.info/e-sna ps/g uides/coc-program-competition-resources/
The following information summarizes the funding request for the total
term of the project. However, the appropriate amount of administrative
costs must be entered in the available fields below.
Eligible Costs Annual Annual Annual Grant Grant Grant Total Total Total Budget
Assistance Assistance Assistance Term Term Term Assistance Assistance Assistance Chang
Requested Requested Requested (Rene (HUD (Adjust Requested Requested Requested e
(Renewal (HUD (Adjustment) wal Award) ment) for Grant for Grant for Grant (Adjust
Submission) Award) Submi Term Term Term ment)
ssion) (Renewal (HUD (Adjustment)
Submission) Award)
1a.Leased Units 40 'tgli $ ' z I04.A'e 9 Y Z e Ye .._.. r �� x ,�ag �° )$0
Applicant Renewal Issues and Conditions Page 57 07/31/2015
Applicant: City of Omaha NE0039C7D011001
Project: City of Omaha NE0039L7D011405
4 $ Y ? rS ,£. ex, t'�pprx 8 i t x $'xE Y aS. F ° F£,,, `;,A
1 b.Leased 2 a �� r Elea �I� l ara d3
s- 9 9 -ass n �8 ''. 8 4�r� 7 -r i'A°.'b a 'm .€sv.. a A.-Aa 3..,"° 'i
$trUCtUnis vE 8 3 .^ 6 & 1 C .k'T" 3 h 1. 9 E
{ 3 s : ^t &4- �a sa s z ".r Cyr€ , S .� 3fkz5Agg a sa
�. E '' +.� sax ihN r xa
2.Rental Assistance , 16 o F 4 *6 �tio� � ,,; a. 4 @acid aa�, - 'ttle ' 4
E, �- t eA F; -�: aft x !� .: x tii is CA a a-1 �r P
3.SU oltive E ..,€`,? € A a ,,9 :i:, t t � f Ri s 1 "? o,i to
�k �`ms k e�ri Zl
:rtr
Services £ E ,a �yry-,IlilhOli"',. � a a a R "5 A '& ,p 9'
4.Operating
�.„
`t'*a.thAhF-4xpz 8 "ht�-, r ';az`A �& . s s. da� � 5" k .._416462, w 5
7 Admin $11,125
(Up to10°/a) � s" ,ki �„
9.Cash Match , , „ : x F
10.in-Kind Match tip ' - xi a
r � Yes '
s
x Yes
� � � ���
Applicant Renewal Issues and Conditions Page 58 07/31/2015
Applicant: City of Omaha NE0039C7D011001
Project: City of Omaha NE0039L7D011405
Submission Summary
4 , €�� e 3 tzi '&t t�,' - dp 0-0}.;c,&# 5 - r ..` 3 &t k ,e �y'+,?Fr
,y tetk: i�e� a m g ' � tOz -.K s �3-4> r x i i Esc;
w�>���s�..�,� �,...wa:����.�.. _y,F-?� �z �,�.� eh�,-:� ,,��������€_=w��.... �.:, �'�..�.�R.�ss�-.�����,ab � ��N,�;,E � �t .,. ��,� .-�itquide
Acknowledgement 07/17/2015
Attachments 07/31/2015
Adjustments 07/17/2015
1A. Application Type No Input Required
1 B. Legal Applicant No Input Required
1C. Application Details No Input Required
1 D. Congressional District(s) 07/17/2015
1 E. Compliance No Input Required
1 F. Declaration No Input Required
2A. Subrecipients No Input Required
3A. Project Detail 07/13/2015
3B. Description 07/13/2015
4A. Services 07/13/2015
4B. Housing Type 07/13/2015
4C. HMIS Participation 07/13/2015
5A. Households 07/13/2015
5B. Subpopulations No Input Required
5C. Outreach 07/13/2015
6A. Standard 07/13/2015
6B. Additional Performance Measures No Input Required
7A. Funding Request 07/13/2015
7D. Rental Assistance 07/13/2015
7H. Match/Leverage No Input Required
71. Summary Budget No Input Required
Applicant Renewal Issues and Conditions Page 59 07/31/2015
CommunityAlliance
MENTAL HEALTH RECOVERY ;
Together.One Life at a Time
July 23, 2015
Mr. David Thomas
City of Omaha Planning Department
1819 Famam Street
Omaha, NE 68183
Dear David:
Community Alliance is please to offer services to individuals participating in the City of Omaha
administered Rental Assistance Program, a permanent supportive housing program for 22 individuals
who are experiencing chronic homelessness and in need of housing and supportive services.
Community Alliance will offer Homeless Transition, Outpatient, including medications as needed,
SOAR, Representative Payee and Day Rehabilitation services to participants in the Rental Assistance
Program.
Community Alliance anticipates serving approximately 30 participants with Homeless Transition and
Day Rehabilitation services per year, 5 participants in Outpatient; 5 participants with SOAR services
and 7 participants with representative payee services.
The estimated value of the services provided to these individuals, inclusive of outreach, case
management, transition services, day rehabilitation and outpatient is estimated at$5,629 per person for
a total of$168,870 per year. In addition,.we estimate the value associated with SOAR services for
5 individuals at$3,000 per person for a total of$15,000 per year. Representative payee services and
budgeting assistance are valued at$3,489 per year. Total value for Community Alliance mental health
services to Rental Assistance Program participants is$ 187,359. Of this total amount, $45,154
contributes to match and $142,205 contributes to leveraging.
We value the opportunity to work with the City of Omaha and the Omaha Housing Authority in
eradicating homelessness in our community. We are proud to partner with both organizations in
working towards this goal.
Sincerely,
A ..
•
Aileen M. Brady ��
Chief Operating Officer
4001 Leavenworth Street
Omaha,Nebraska 68105
(402)341-5128
Fax Numbers:
General(402)341-0280
ACT Program(402)341-2992
Administration(402)505-9849
Client Records(402)505-9803
www.community-alliance.org
Planning Department
et" Omaha/Douglas Civic Center
to:11j �r .� �� 1819 Farnam Street,Suite 1100
R-a r 4°i 4` Omaha,Nebraska 68183
�,, r a (442)444-5150
Telefax(402)444.6140
janies R.Thele
City of Omaha Director
Jean Stothert,Mayor
July 30,2015
To Whom It May Concern:
The purpose of this letter is to acknowledge that all requirements of the housing first model are
understood and that the City of Omaha's CoC Rental Assistance program will operate within
those requirements.
David Thomas
Assistant Planning Director
City Planning Department
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
MINORITY BUSINESS & WOMEN BUSINESS
ENTERPRISE PLAN
October 2014
iscrokBA,MF6
.40,1107
II
D FEW.
PLANNING•OMAHA
Jean Stothert,Mayor PLANNING DEPARTMENT James R. Thele
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 10/3/2014
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 10/3/2014
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 10/3/2014
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 10/3/2014
MBE/WBE FOR GOODS AND SERVICES
North Omaha Contractor Alliance
2505 North 24th Street Suite 409A
Omaha,NE 68110
Houston McKel1, 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 johnson@sba.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 10/3/2014
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 10/3/2014
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 10/3/2014
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 10/3/2014
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(it applicable)
By: Signature of Owner/Authorized Representative Name
Print Owner/Authorized Representative Name
OPPORTUNITY
9 Reviewed and approved 10/3/2014
MINORITY BUSINESS & WOMEN BUSINESS
ENTERPRISE PLAN
October 2014
O hHA,4,4,4
A,A°441141
pA '_ N
O�'� FEg4��4� PLANNING•OMAHA
Jean Stothert,Mayor PLANNING DEPARTMENT James R.Thele
City of Omaha CITY OF OMAHA City of Omaha
Planning Department
Omaha/Douglas Civic Center
1819 Farnam Street
Omaha,Nebraska 68183
1 Reviewed and approved 10/3/2014
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 10/3/2014
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 10/3/2014
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 10/3/2014
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 johnson@sba.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(a,urbanleagueneb.org
(402) 451-1066
5 Reviewed and approved 10/3/2014
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 10/3/2014
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 10/3/2014
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 10/3/2014
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
A
EQUAL HOUSING
OPPORTUNITY
9 Reviewed and approved 10/3/2014
AriA� - L
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.
C-25A CITY OF OMAHA
LEGISLATIVE CHAMBER
Omaha,Nebraska
RESOLVED BY THE CITY COUNCIL OF THE CITY OF OMAHA:
WHEREAS, in Funding Year 2014, the U. S. Department of Housing and Urban
Development published in the Federal Register a Notice of Funding Availability for Continuum
of Care Homeless Assistance designed to help communities develop Continuum of Care systems
to assist homeless persons; and,
WHEREAS, the City of Omaha developed and submitted to the U. S. Department
of Housing and Urban Development a consolidated application with Heartland Family Service,
The Salvation Army, Williams Prepared Place and others for Continuum of Care Homeless
Assistance funding; and,
WHEREAS, on January 23, 2015, the U. S. Department of Housing and Urban
Development selected the City of Omaha project entitled, "Rental Assistance for the Chronically
Homeless" for funding under the Fiscal Year 2014 Continuum of Care Homeless Assistance
Program; and,
WHEREAS, the U. S. Department of Housing and Urban Development has
awarded Continuum of Care Homeless Assistance Program funds and has assigned a grant
project number for the City of Omaha as follows: NE0039L7D011405 for the "Rental Assistance
for the Chronically Homeless" in the amount of$180,613.00 (Funding Year 2014, Fund 12196,
Organization 128034); and,
WHEREAS, the City of Omaha agrees to pay the Omaha Housing Authority
$169,488.00 from its Continuum of Care Homeless Assistance Program grant for the cost of
implementing the City's "Rental Assistance for the Chronically Homeless" program; and,
WHEREAS, the Omaha Housing Authority possesses the administrative
capability and agrees to implement the City's "Rental Assistance for the Chronically Homeless"
program; and,
By
Council member
Adopted
City Clerk
Approved
Mayor
0
c
o'
U CD
S C
C-25A CITY OF OMAHA
LEGISLATIVE CHAMBER
Omaha,Nebraska
PAGE 2
WHEREAS, the "Rental Assistance for the Chronically Homeless" progx";a.m will
add to the housing and service delivery programs intended to help homeless individuals and
families move to permanent housing and self-sufficiency; and,
WHEREAS, it is in the best interest of the City for the City Council to authorize
the Mayor to approve all revisions to this Continuum of Care Program Grant Agreement, as
approved by HUD; except that revisions involving a change in the subrecipient, a change in the
project site, or a change in the category of participants to be served are considered substantial
changes requiring the prior approval of the City Council.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF OMAHA:
THAT, the attached Agreement, as recommended by the Mayor, between the City
of Omaha and the Housing Authority of the City of Omaha (OHA), 1805 Harney Street, Omaha,
Nebraska 68102, for Continuum of Care Homeless Assistance Program funding in the amount of
$169,488.00 to be used to implement the Rental Assistance for the Chronically Homeless
program, is hereby approved. Funds in the amount of $169,488.00 shall be paid from the
Continuum of Care Homeless Assistance Program Fund (Funding Year 2014, Fund 12196,
Organization 128034, Grant #NE0039L7D011405).
BE IT FURTHER RESOLVED,
THAT, the Mayor is authorized to approve all revisions to this Continuum of Care
Program Grant Agreement except that revisions involving a change in the subrecipient, a change
in the project site, or a change in the category of participants to be served shall require the prior
approval of the City Council.
APPROVED AS TO FORM:
a-7 ,J -20i 6
CITY ATTORNEY DATE
2308 dlh
By 411 A• 0L47.66
pp Councilmember
Adopted"
f.7...2..J..2�.�. �'
City, lerk 2/ /� /
A ro L.0
pP
Mayor
!//1171/41r/'40
NO. .......,::' ::..,� .,..,.....
Resolution by
Res. that, the attached Agreement. as
recommended by the Mayor. between the
City of Omaha and the Housing Authority of
the City of Omaha (OHA), 1805 Harney
Street, Omaha, Nebraska 68102, for
Continuum of Care Homeless Assistance
Program funding in the amount of
$169.488.00 to be used to implement the
Rental Assistance for the Chronically
Homeless program, is hereby approved.
Funds in the amount of$169,488.00 shall be
paid from the Continuum of Care Homeless
Assistance Program Fund (Funding Year
2014. Fund 12196, Organization 128034,
Grant # NE0039L7D011405) and that, the
Mayor is authorized to approve all revisions
to this Continuum of Care Program Grant
Agreement except that revisions involving a
change in the subrecipient. a change in the
project site, or a change in the category of
participants to be served shall require the
prior approval of the City Council.
2308 dlh
Presented to City Council
FEB 2 3 2016
Adopted 7 o
Railer grown
City Clerk