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costs), provided these services are in (4) The value of loaned equipment the same skill for which the employee shall not exceed its fair rental value. is normally paid.

(i) The following requirements per(f) Donated supplies may include tain to the recipient's supporting such items as office supplies, labora- records for in-kind contributions from tory supplies or workshop and classroom supplies. Value assessed to do- (1) Volunteer services shall be docunated supplies included in the cost mented and, to the extent feasible, susharing or matching share shall be rea- ported by the same methods used by sonable and shall not exceed the fair the recipient for its own employees. market value of the property at the (2) The basis for determining the time of the donation.

valuation for personal service, mate(g) The method used for determining rial, equipment, buildings and land cost sharing or matching for donated shall be documented. equipment, buildings and land for (j) DOE shall specify in the solicitawhich title passes to the recipient may tion or in the program rule, if any, any differ according to the purpose of the cost sharing requirement. The award award, if either paragraph (g)(1) or (2) document shall be specific as to whethof this section apply.

er the cost sharing is based on a min(1) If the purpose of the award is to imum amount for the recipient or on a assist the recipient in the acquisition percentage of total costs. of equipment, buildings or land, the (k) If DOE requires that a recipient total value of the donated property provide cost sharing which is not remay be claimed as cost sharing or quired by statute or which exceeds a matching.

statutory minimum, DOE shall state in (2) If the purpose of the award is to the program rule or solicitation the support activities that require the use reasons for requiring such cost sharing, of equipment, buildings or land, nor recommended or required levels of cost mally only depreciation or use charges sharing, and the circumstances under for equipment and buildings may be which the requirement for cost sharing made. However, the full value of equip- may be waived or adjusted during any ment or other capital assets and fair negotiation. rental charges for land may be allowed, (1) Whenever DOE negotiates the provided that DOE has approved the amount of cost sharing, DOE may take charges.

into account such factors as the use of (h) The value of donated property program income (see $ 600.124), patent shall be determined in accordance with rights, and rights in data. Foregone fee the usual accounting policies of the re- or profit shall not be considered in escipient, with the following qualifica- tablishing the extent of cost sharing. tions.

(1) The value of donated land and $600.124 Program income. buildings shall not exceed its fair mar (a) The standards set forth in this ket value at the time of donation to section shall be used to account for the recipient as established by an inde program income related to projects fipendent appraiser (e.g., certified real nanced in whole or in part with DOE property appraiser or General Services funds. Administration representative) and (b) Except as provided in paragraph certified by a responsible official of the (h) of this section, program income recipient

earned during the project period shall (2) The value of donated equipment be retained by the recipient and, in acshall not exceed the fair market value cordance with program regulations or of equipment of the same age and con the terms and conditions of the award, dition at the time of donation.

shall be used in one or more of the fol(3) The value of donated space shall lowing ways. not exceed the fair rental value of com- (1) Added to funds committed to the parable space as established by an inde- project and used to further eligible pendent appraisal of comparable space project objectives. and facilities in a privately-owned (2) Used to finance the non-DOE building in the same locality.

share of the project.

(3) Deducted from the total project allowable cost in determining the net allowable costs on which the share of costs is based.

(c) When DOE authorizes the disposition of program income as described in paragraphs (b)(1) or (b)(2) of this section, program income in excess of any limits stipulated shall be used in accordance with paragraph (b)(3) of this section.

(d) In the event that the program regulations or the terms and conditions of the award do not specify how program income is to be used, paragraph (b)(3) of this section shall apply automatically to all projects or programs except research. For awards that support research, paragraph (b)(1) of this section shall apply automatically unless the award indicates another alternative in the terms and conditions, the recipient is subject to special award conditions, as indicated in $ 600.114, or the recipient is a commercial organization.

(e) Unless program regulations or the terms and conditions of the award provide otherwise, recipients shall have no obligation to the Federal Government regarding program income earned after the end of the project period.

(1) Unless program regulations or the terms and conditions of the award provide otherwise, costs incident to the generation of program income may be deducted from gross income to determine program income, provided these costs have not been charged to the award.

(g) Proceeds from the sale of property shall be handled in accordance with the requirements of the Property Standards (See $$ 600.130 through 600.137).

(h) Unless program regulations or the terms and condition of the award provide otherwise, recipients shall have no obligation to the Federal Government with respect to program income earned from license fees and royalties for copyrighted material, patents, patent applications, trademarks, and inventions produced under an award. However, Patent and Trademark Amendments (35 U.S.C. Chapter 18) apply to inventions made under an experimental, developmental, or research award.

$600.125 Revision of budget and pro

gram plans. (a) The budget plan is the financial expression of the project or program as approved during the award process. It includes the sum of the Federal and non-Federal share when there are cost sharing requirements. It shall be related to performance for program evaluation purposes whenever appropriate.

(b) Recipients are required to report deviations from budget and program plans, and request prior approvals for budget and program plan revisions, in accordance with this section.

(c) For nonconstruction awards, recipients shall request prior approvals from the DOE for one or more of the following program or budget related reasons.

(1) Change in the scope or the objective of the project or program (even if there is no associated budget revision requiring prior written approval).

(2) Change in a key person specified in the application or award document.

(3) The absence for more than three months, or a 25 percent reduction in time devoted to the project, by the approved project director or principal investigator.

(4) The need for additional Federal funding.

(5) If required by program regulations, the transfer of amounts budgeted for indirect costs to absorb increases in direct costs, or vice versa.

(6) The inclusion, unless waived by program regulations or the terms and conditions of award, of costs that require prior approval in accordance with OMB Circular A-21, “Cost Principles for Institutions of Higher Education,” OMB Circular A-122, “Cost Principles for Non-Profit Organizations," or 45 CFR part 74 Appendix E, “Principles for Determining Costs Applicable to Research and Development under Grants and Contracts with Hospitals,” or 48 CFR part 31, “Contract Cost Principles and Procedures," as applicable.

(7) The transfer of funds allotted for training allowances (direct payment to trainees) to other categories of expense.

(8) Unless described in the application and funded in the approved awards, the subaward, transfer or contracting out of any work under an

award. This provision does not apply to search, prior to receipt of continuation the purchase of supplies, material, funding, preaward expenditures by reequipment or general support services. cipients are not subject to the limita

(d) No other prior approval require- tion or approval requirements of ments for specific items may be im- $600.125(e)(1). Nevertheless, incurrence posed unless a deviation has been ap- by the recipient does not impose any proved in accordance with $ 600.4.

obligation on DOE if a continuation (e) Except for requirements listed in award is not subsequently made, or if paragraphs (c)(1) and (c)(4) of this sec- an award is made for a lesser amount tion, program regulations may waive than the recipient expected. cost-related and administrative prior (f) Program regulations may restrict written approvals required by this sub- the transfer of funds among direct cost part and its Appendices. Such waivers categories or programs, functions and may include authorizing recipients to activities for awards in which DOE's do any one or more of the following. share of the project exceeds $100.000

(1) Incur pre-award costs 90 calendar and the cumulative amount of such days prior to award without prior ap transfers exceeds or is expected to exproval or more than 90 calendar days ceed 10 percent of the total budget as with the prior approval of DOE. All last approved by DOE. However, no pre-award costs are incurred at the re program regulation shall permit a cipient's risk (i.e., DOE is under no ob transfer that would cause any Federal ligation to reimburse such costs if for appropriation or part thereof to be any reason the recipient does not re- used for purposes other than those conceive an award or if the award is less sistent with the original intent of the than anticipated and inadequate to appropriation. cover such costs).

(g) All other changes to nonconstruc(2) Initiate a one-time extension of tion budgets, except for the changes dethe expiration date of the final budget scribed in paragraph (j) of this section, period of the project of up to 12 months do not require prior approval. unless one or more of the following (h) For construction awards, recipiconditions apply.

ents shall request prior written ap(i) The terms and conditions of award proval promptly from the Contracting prohibit the extension.

Officer for budget revisions whenever (ii) The extension requires additional paragraph (h) (1), (2) or (3) of this secFederal funds.

tion apply. (iii) The extension involves any (1) The revision results from changes change in the approved objectives or in the scope or the objective of the scope of the project.

project or program. (iv) The extension is being exercised (2) The need arises for additional merely for the purpose of using unobli- Federal funds to complete the project. gated balances. For one-time exten- (3) A revision is desired which insions, the recipient must notify the volves specific costs for which prior DOE in writing with the supporting written approval requirements may be reasons and revised expiration date at imposed consistent with applicable least 10 days before the expiration date OMB cost principles listed in $600.127. specified in the award.

(i) Except in accordance with the de(3) Carry forward unobligated bal- viation procedures in 600.4 or as may be ances to subsequent funding periods. provided for in program regulations, no

(4) For awards that support research, other prior approval requirements for unless the terms and conditions of specific items will be imposed by DOE. award provide otherwise, the prior ap- (j) When DOE makes an award that proval requirements described in para provides support for both construction graph (e) of this section are automatic and nonconstruction work, DOE may cally waived (i.e., recipients need not require the recipient to request prior obtain such prior approvals) unless one approval from DOE before making any of the conditions included in fund or budget transfers between the $ 600.125(e)(2) applies.

two types of work supported. (5) For continuation awards within a (k) For both construction and nonmultiple year project in support of re- construction awards, recipients shall notify DOE in writing promptly when 7507) and revised OMB Circular A-133, ever the amount of Federal authorized "Audits of States, Local Governments, funds is expected to exceed the needs of and Non-Profit Organizations." the recipient for the project period by (c) For-profit hospitals not covered more than $5000 or five percent of the by the audit provisions of revised OMB Federal award, whichever is greater. Circular A-133 shall be subject to the This notification shall not be required audit requirements of the Federal if an application for additional funding awarding agencies. is submitted for a continuation award. (d) The Contracting Officer may

(1) Requests for budget revisions may audit, or cause to be audited, awards to be made by letter.

commercial organizations whenever (m) Within 30 calendar days from the and in the degree of detail he/she deems date of receipt of the request for budg necessary. The Contracting Officer et

evisions. DOE shall review the re- shall rely on available audit reports in quest and notify the recipient whether determining the need for and scope of the budget revisions have been ap such audits. The commercial organizaproved. If the revision is still under tion has similar authority in auditing consideration at the end of 30 calendar subrecipients. days, DOE shall inform the recipient in (e) The Contracting Officer may writing of the date when the recipient audit, or cause to be audited, awards to may expect the decision.

individuals whenever and in the degree (n) DOE approval or disapproval of a

of detail he/she deems necessary. The request for a budget or project revision

Contracting Officer shall rely on availshall be in writing and signed by a DOE

able audit reports in determining the Contracting Officer

need for and scope of such audits. (0) A request by a subrecipient for [59 FR 53266, Oct. 21, 1994, as amended at 62 prior approval shall be addressed in FR 45939, 45940, Aug. 29, 1997) writing to the recipient. The recipient shall promptly review such request and

$ 600.127 Allowable costs. shall approve or disapprove the request (a) General. For each kind of recipiin writing within 30 days from the date ent, there is a set of Federal principles of the recipient's request for the revi for determining allowable costs. Allowsion. A recipient shall not approve any ability of costs shall be determined in budget or project revision which is in accordance with the cost principles apconsistent with the purpose or terms plicable to the entity incurring the and conditions of the DOE award. If the costs. Thus, allowability of costs inrevision requested by the subrecipient curred by State, local or federally-recwould result in a change to the recipi ognized Indian tribal governments is ent's approved budget or approved determined in accordance with the proproject which requires DOE prior ap visions of OMB Circular A-87, “Cost proval, the recipient shall obtain DOE Principles for State and Local Governapproval before approving such revi ments." The allowability of costs insion.

curred by non-profit organizations is

determined in accordance with the pro$600.126 Non-Federal audits.

visions of OMB Circular A-122, “Cost (a) Recipients and subrecipients that Principles for Non-Profit Organizaare institutions of higher education or tions." The allowability of costs inother non-profit organizations (includ- curred by institutions of higher eduing hospitals) shall be subject to the cation is determined in accordance audit requirements contained in the with the provisions of OMB Circular ASingle Audit Act Amendments of 1996 21, "Cost Principles for Educational In(31 U.S.C. 7501-7507) and revised OMB stitutions." The allowability of costs Circular A-133, “Audits of States, incurred by hospitals is determined in Local Governments, and Non-Profit Or accordance with the provisions of Apganizations."

pendix E of 45 CFR part 74, “Principles (b) State and local governments shall for Determining Costs Applicable to be subject to the audit requirements Research and Development Under contained in the Single Audit Act Grants and Contracts with Hospitals." Amendments of 1996 (31 U.S.C. 7501- The allowability of costs incurred by

nizant agency or from DOE, as appropriate.

(3) If a subaward under an award or subaward provides for the payment of indirect costs, the recipient or subrecipient shall be responsible for negotiating appropriate indirect costs, using the cost principles applicable to the subrecipient or contractor, unless the subrecipient or contractor has negotiated an applicable rate directly with DOE or another Federal department or agency. DOE may review and audit the procedures a recipient or subrecipient uses in conducting indirect cost negotiations.

(c) Fee or profit. No increment above cost may be paid to a recipient or subrecipient under a DOE award or subaward, except for SBIR recipients as provided in $600.181(d)(3). A fee or profit may be paid to a contractor providing goods or services under a contract with a recipient or subrecipient.

commercial organizations and those non-profit organizations listed in Attachment C to Circular A-122 is determined in accordance with the provisions of the Federal Acquisition Regulation (FAR) at 48 CFR part 31.

(b) Indirect costs. Unless restricted by Federal statute or program rule, DOE shall provide for the reimbursement of appropriate indirect costs.

(1) DOE shall include an amount for indirect costs in an award only if the applicant requests reimbursement of such costs and

(i) Submits evidence that a cognizant Federal agency has been assigned to establish indirect cost rates for the applicant and indicates or provides evidence that

(A) A current agreement containing an applicable approved indirect cost rate(s) covering all or part of the budget period for which DOE may provide funding has been established; or

(B) An indirect cost proposal has been submitted to the cognizant agency in order to establish an applicable approved indirect cost rate(s) covering all or part of the budget period for which DOE may provide funding; or

ms, or (C) An indirect cost proposal covering all or part of the budget period and applicable to the activities for which DOE may provide funding will be submitted to the cognizant agency for approval no later than three months after the beginning date of the initial budget period of the DOE award or, for subsequent budget periods, in accordance with any schedule established by the cognizant agency; or

(ii) If not assigned to a cognizant agency, the applicant includes, in the application, data that is current, complete, accurate, and sufficient to allow the Contracting Officer to determine a rate(s) for indirect costs. If the total approved budget will not exceed $100,000 or if the amount requested for indirect costs does not exceed $5,000, DOE may waive the requirement for negotiation of a rate and, in lieu thereof, provide a reasonable allowance for such costs.

(2) Indirect cost proposals shall be prepared and submitted in accordance with the applicable Federal cost principles and instructions from the cog

8600.128 Period of availability of

funds. Where a funding period is specified, a recipient may charge to the award only allowable costs resulting from obligations incurred during the funding period and any pre-award costs authorized by DOE.

Property Standards

$600.130 Purpose of property stand

ards. Sections 600.131 through 600.137 set forth uniform standards governing management and disposition of property furnished by the Federal Government or whose cost was charged to a project supported by a Federal award. Recipients shall observe these standards under awards and shall not impose additional requirements, unless specifically required by Federal statute or program regulations. The recipient may use its own property management standards and procedures provided it observes the provisions of $$ 600.131 through 600.137.

$ 600.131 Insurance coverage.

Recipients shall, at a minimum, provide the equivalent insurance coverage for real property and equipment acquired with DOE funds as provided to

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