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in the format or on the forms authorized by paragraphs (a) and (b) of this section. [59 FR 53266, Oct. 21, 1994, as amended at 61 FR 7165, Feb. 26, 1996)
$600.113 Debarment and suspension
Recipients shall comply with the nonprocurement debarment and suspension common rule implementing E.O.'s 12549 and 12689, “Debarment and Suspension," 10 CFR part 1036. This common rule restricts subawards and contracts with certain parties that are debarred, suspended or otherwise excluded from or ineligible for participation in Federal assistance programs or activities.
trade and commerce. The Act requires each Federal agency to establish a date or dates in consultation with the Secretary of Commerce, when the metric system of measurement will be used in the agency's procurements, grants, and other business-related activities. Metric implementation may take longer where the use of the system is initially impractical or likely to cause significant inefficiencies in the accomplishment of federally-funded activities. DOE will follow the provisions of E.O. 12770. “Metric Usage in Federal Government Programs."
$600.114 Special award conditions.
(a) If an applicant or recipient has a history of poor performance, is not financially stable, has a management system that does not meet the stand ards prescribed in this subpart, has not conformed to the terms and conditions of a previous award, or is not otherwise responsible, DOE may impose additional requirements as needed, without regard to the deviation provisions of $600.4. Such applicant or recipient will be notified in writing as to the nature of the additional requirements, the reason why the additional requirements are being imposed, the nature of the corrective action needed, and the time allowed for completing the corrective actions. Reconsideration of the additional requirements may be requested at any time. Any special conditions shall be promptly removed once the conditions that prompted them have been corrected.
(b) A recipient may place a special restrictive condition, as specified in paragraph (a) of this section, in a subaward. In any such case, the recipient must notify DOE in writing within 15 days of the subaward. DOE shall decide whether to notify OMB and other interested parties. $600.115 Metric system of measure
ment. The Metric Conversion Act, as amended by the Omnibus Trade and Competitiveness Act (15 U.S.C. 205) declares that the metric system is the preferred measurement system for U.S.
8600.116 Resource Conservation and
Recovery Act. Under the Act (Pub. L. 94-580 codified at 42 U.S.C. 6962), any State agency or agency of a political subdivision of a State which is using appropriated Federal funds must comply with section 6002. Section 6002 requires that preference be given in procurement programs to the purchase of specific products containing recycled materials identified in guidelines developed by the Environmental Protection Agency (EPA) (40 CFR parts 247-254). Accordingly, State and local institutions of higher education, hospitals, and nonprofit organizations that receive direct Federal awards or other Federal funds shall give preference in their procurement programs funded with Federal funds to the purchase of recycled products pursuant to the EPA guidelines.
$ 600.117 Certifications and represen
tations. Unless prohibited by statute or codified regulation, each Federal awarding agency is authorized and encouraged to allow recipients to submit certifications and representations required by statute, executive order, or regulation on an annual basis, if the recipients have ongoing and continuing relationships with the agency. Annual certifications and representations shall be signed by responsible officials with the authority to ensure recipients' compliance with the pertinent requirements.
appropriate, financial information
should be related to performance and Financial and Program Management unit cost data. As discussed in para
graph (a) of this section, unit cost data $ 600.120 Purpose of financial and pro
is generally not appropriate for awards gram management.
that support research. Sections 600.121 through 600.128 pre (5) Written procedures to minimize scribe standards for financial manage the time elapsing between the transfer ment systems, methods for making of funds to the recipient from the U.S. payments and rules for satisfying cost Treasury and the issuance or redempsharing and matching requirements, tion of checks, warrants or payments accounting for program income, budget by other means for program purposes revision approvals, making audits, de- by the recipient. To the extent that the termining allowability of cost, and es- provisions of the Cash Management Imtablishing fund availability.
provement Act (CMIA) (Pub. L. 101-453)
govern, payment methods of State $ 600.121 Standards for financial man
agencies, instrumentalities, and fiscal agement systems.
agents shall be consistent with CMIA (a) Recipients shall relate financial Treasury-State Agreements or the data to performance data and develop CMIA default procedures codified at 31 unit cost information whenever prac- CFR part 205, “Withdrawal of Cash tical. For awards that support re- from the Treasury for Advances under search, it should be noted that it is Federal Grant and Other Programs." generally not appropriate to develop (6) Written procedures for deterunit cost information.
mining the reasonableness, allocability (b) Except for the provisions of and allowability of costs in accordance 600.121(f) and 600.181, recipients' finan- with the provisions of the applicable cial management systems shall provide Federal cost principles and the terms for the following:
and conditions of the award. (1) Accurate, current and complete (7) Accounting records including cost disclosure of the financial results of accounting records that are supported each federally-sponsored project or by source documentation. program in accordance with the report- (c) Where the Federal Government ing requirements set forth in $ 600.152. guarantees or insures the repayment of If a DOE award requires reporting on money borrowed by the recipient, the an accrual basis from a recipient that Contracting Officer, at his or her dismaintains its records on other than an cretion, may require adequate bonding accrual basis, the recipient shall not be and insurance if the bonding and insurrequired to establish an accrual ac ance requirements of the recipient are counting system. These recipients may not deemed adequate to protect the indevelop such accrual data for their re- terest of the Federal Government. ports on the basis of an analysis of the (d) The Contracting Officer may redocumentation on hand.
quire adequate fidelity bond coverage (2) Records that identify adequately where the recipient lacks sufficient the source and application of funds for coverage to protect the Federal Govfederally-sponsored activities. These ernment's interest. records shall contain information per- (e) Where bonds are required in the taining to Federal awards, authoriza situations described in S$ 600.121 (c) and tions, obligations, unobligated bal. (d), the bonds shall be obtained from ances, assets, outlays, income and in companies holding certificates of auterest.
thority as acceptable sureties, as pre(3) Effective control over and ac scribed in 31 CFR part 223, “Surety countability for all funds, property and Companies Doing Business with the other assets. Recipients shall ade- United States." quately safeguard all such assets and (f) Individuals whose financial manassure they are used solely for author- agement systems do not meet the minized purposes.
imum standards of $ 600.121 (b) shall (4) Comparison of outlays with budg maintain a separate bank account for et amounts for each award. Whenever deposit of award or subaward funds.
Disbursements by the recipient or sub- authorized by OMB. This form is not to recipient from this account shall be be used when Treasury check advance supported by source documentation payments are made to the recipient such as canceled checks, paid bills, re- automatically through the use of a preceipts, payrolls, etc.
determined payment schedule or if pre
cluded by special DOE instructions for $ 600.122 Payment.
electronic funds transfer. (a) Payment methods shall minimize (e) Reimbursement is the preferred the time elapsing between the transfer method when the requirements in paraof funds from the United States Treas graph (b) of this section cannot be met. ury and the issuance or redemption of DOE may also use this method on any checks, warrants, or payment by other construction agreement, or if the means by the recipients. Payment major portion of the construction methods of State agencies or instru project is accomplished through primentalities shall be consistent with vate market financing or Federal Treasury-State CMIA agreements or loans, and the Federal assistance condefault procedures codified at 31 CFR stitutes a minor portion of the project. part 205.
(1) When the reimbursement method (b) Recipients will be paid in ad
is used, DOE shall make payment withvance, provided they maintain or dem
in 30 days after receipt of the billing, onstrate the willingness to maintain:
unless the billing is improper. (1) Written procedures that minimize
(2) Recipients are authorized to subthe time elapsing between the transfer
mit requests for reimbursement at of funds and disbursement by the re
least monthly when electronic funds cipient, and
transfers are not used. (2) Financial management systems
(f) If a recipient cannot meet the crithat meet the standards for fund control and accountability as established
teria for advance payments and DOE in $600.121. Cash advances to a recipi
has determined that reimbursement is
not feasible because the recipient lacks ent organization shall be limited to the
sufficient working capital, DOE may minimum amounts needed and be timed to be in accordance with the ac
provide cash on a working capital adtual, immediate cash requirements of
vance basis. Under this procedure, DOE the recipient organization in carrying
advances cash to the recipient to cover out the purpose of the approved pro
its estimated disbursement needs for gram or project. The timing and
an initial period generally geared to amount of cash advances shall be as
the recipient's disbursing cycle. Thereclose as is administratively feasible to
after, DOE reimburses the recipient for the actual disbursements by the recipi
its actual cash disbursements. The ent organization for direct program or
working capital advance method of project costs and the proportionate
payment will not be used for recipients share of any allowable indirect costs.
unwilling or unable to provide timely (c) Whenever possible, advances shall aava
advances to their subrecipient to meet be consolidated to cover anticipated
the subrecipient's actual cash disbursecash needs for all awards made by the ments. DOE to the recipient.
(g) To the extent available, recipi(1) Advance payment mechanisms in- ents shall disburse funds available from clude, but are not limited to, Treasury repayments to and interest earned on a check and electronic funds transfer. revolving fund, program income, re
(2) Advance payment mechanisms are bates, refunds, contract settlements, subject to 31 CFR part 205.
audit recoveries and interest earned on (3) Recipients may submit requests such funds before requesting additional for advances and reimbursements at cash payments. least monthly when electronic fund (h) Unless otherwise required by stattransfers are not used.
ute, DOE will not withhold payments (d) Requests for Treasury check ad- for proper charges made by recipients vance payment shall be submitted on at any time during the project period SF-270, "Request for Advance or Reim- unless paragraph (h)(1) or (h)(2) of this bursement," or other forms as may be section apply.
(1) A recipient has failed to comply that it would not be feasible within the with the project objectives, the terms expected Federal and non-Federal cash and conditions of the award, or DOE re resources. porting requirements.
(1) For those entities where CMIA (2) The recipient or subrecipient is and its implementing regulations do delinquent in a debt to the United
not apply, interest earned on Federal States. Under such conditions, the Fed
advances deposited in interest bearing eral awarding agency may, upon rea
accounts shall be remitted annually to sonable notice, inform the recipient
the HHS Payment Management Systhat payments shall not be made for
tem through an electronic medium obligations incurred after a specified
such as the FEDWIRE Deposit system. date until the conditions are corrected
Recipients which do not have this caor the indebtedness to the Federal Gov
pability should use a check. The adernment is liquidated. Before with
dress is the Department of Health and holding any payment, DOE shall notify
Human Services, Payment Managethe recipient that payments shall not be made for obligations incurred after
ment System, P.O. Box 6021, Rockville, a specified date, which shall ordinarily
MD 20852. Interest amounts up to $250 be no sooner than 30 days from the date
per year may be retained by the recipiof the notice, until the recipient cor
ent for administrative expense. State rects the noncompliance or pays the in
universities and hospitals shall comply debtedness to the Federal government.
with CMIA, as it pertains to interest. If (i) Standards governing the use of
an entity subject to CMIA uses its own banks and other institutions as deposi funds to pay pre-award costs for discretories of funds advanced under awards
tionary awards without prior written are as follows.
approval from the Federal awarding (1) Except for situations described in agency, it waives its right to recover paragraph (i)(2) of this section, DOE the interest under CMIA. shall not require separate depository (m) Except as noted elsewhere in this accounts for funds provided to a recipi- subpart, only the following forms shall ent or establish any eligibility require be authorized for the recipients in rements for depositories for funds pro questing advances and reimbursevided to a recipient. However, recipi ments. Federal agencies shall not reents must be able to account for the re
quire more than an original and two ceipt, obligation and expenditure of
copies of these forms. funds.
(1) SF-270, Request for Advance or (2) Advances of Federal funds shall be
Reimbursement. Each Federal awarddeposited and maintained in insured
ing agency shall adopt the SF-270 as a accounts whenever possible.
standard form for all nonconstruction (j) Consistent with the national goal
programs when electronic funds transof expanding the opportunities for
fer or predetermined advance methods women-owned and minority-owned
are not used. Federal awarding agenbusiness enterprises, recipients are en
cies, however, have the option of using couraged to use women-owned and mi
this form for construction programs in nority-owned banks (a bank which is
lieu of the SF-271, “Outlay Report and owned at least 50 percent by women or minority group members).
Request for Reimbursement for Con(k) Recipients shall maintain ad
struction Programs." vances of Federal funds in interest
(2) SF-271, Outlay Report and Rebearing accounts, unless paragraph (k)
quest for Reimbursement for Construc(1), (2) or (3) of this section apply.
tion Programs. Each Federal awarding (1) The recipient receives less than agency shall adopt the SF-271 as the $120,000 in Federal awards per year.
standard form to be used for requesting (2) The best reasonably available in reimbursement for construction proterest bearing account would not be ex grams. However, a Federal awarding pected to earn interest in excess of $250 agency may substitute the SF-270 per year on Federal cash balances. when the Federal awarding agency de
(3) The depository would require an termines that it provides adequate inaverage or minimum balance so high formation to meet Federal needs.
(n) The DOE may convert a recipient (5) Are not paid by the Federal Govfrom advance payment to reimburse- ernment under another award, except ment whenever the recipient no longer where authorized by Federal statute to meets the criteria for advance payment be used for cost sharing or matching. specified in paragraph (b) of this sec- (6) Are provided for in the approved tion. Any such conversion may be ac- budget. complished only after the DOE has ad- (7) Conform to other provisions of vised the recipient in writing of the this subpart, as applicable. reasons for the proposed action and has (b) Unrecovered indirect costs may be provided a period of at least 30 days included as part of cost sharing or within which the recipient may take matching. corrective action or provide satisfac- (c) Values for recipient contributions tory assurances of its intention to take of services and property shall be estabsuch action.
lished in accordance with the applica(0) With prior DOE approval and in ble cost principles. If DOE authorizes accordance with written DOE instruc- recipients to donate buildings or land tions, a recipient may assign to a bank, for construction facilities acquisition trust company or other financing insti projects or long-term use, the value of tution, including any Federal lending the donated property for cost sharing agency, reimbursement by Treasury or matching shall be the lesser of eicheck due from DOE under the fol- ther paragraph (c)(1) or (2) of this seclowing conditions:
tion. (1) The award provides for reimburse (1) The certified value of the remainment totaling $1,000 or more;
ing life of the property recorded in the (2) The assignment covers all recipient's accounting records at the amounts payable under the award that time of donation. have not already been paid;
(2) The current fair market value. (3) Reassignment is prohibited; and However, when there is sufficient jus
(4) The assignee files a written notice tification, DOE may approve the use of of award payment assignment and a the current fair market value of the true copy of the instrument of assign- donated property, even if it exceeds the ment with DOE. Any interest costs re- certified value at the time of donation sulting from a loan obtained on the to the project. basis of an assignment are unallowable (d) Volunteer services furnished by charges to DOE award funds or any re- professional and technical personnel, quired cost sharing.
consultants, and other skilled and un(p) Recipients shall observe the re- skilled labor may be counted as cost quirements of this section in making sharing or matching if the service is an or withholding payments to subrecipi- integral and necessary part of an apents except that the forms used by re- proved project or program. Rates for cipients are not required to be used by volunteer services shall be consistent subrecipients when requesting ad with those paid for similar work in the vances or reimbursement.
recipient's organization. In those in
stances in which the required skills are $ 600.123 Cost sharing or matching.
not found in the recipient organization, (a) All cost sharing or matching con- rates shall be consistent with those tributions, including cash and third paid for similar work in the labor marparty in-kind, shall meet all of the fol ket in which the recipient competes for lowing criteria.
the kind of services involved. In either (1) Are verifiable from the recipient's case, paid fringe benefits that are rearecords.
sonable, allowable, and allocable may (2) Are not included as contributions be included in the valuation. for any other federally-assisted project (e) When an employer other than the or program.
recipient furnishes the services of an (3) Are necessary and reasonable for employee, these services shall be valproper and efficient accomplishment of ued at the employee's regular rate of project or program objectives.
pay (plus an amount of fringe benefits (4) Are allowable under the applica- that are reasonable, allowable, and alble cost principles.
locable, but exclusive of overhead